Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Mar. 29, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | FXNC | ||
Entity Registrant Name | FIRST NATIONAL CORP /VA/ | ||
Entity Central Index Key | 719,402 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Common Stock, Shares Outstanding | 4,940,766 | ||
Entity Public Float | $ 39,525,026 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and due from banks | $ 10,106 | $ 8,247 |
Interest-bearing deposits in banks | 30,986 | 31,087 |
Securities available for sale, at fair value | 94,802 | 105,559 |
Securities held to maturity, at carrying value (fair value, 2016, $52,709; 2015, $66,438) | 53,398 | 66,519 |
Restricted securities, at cost | 1,548 | 1,391 |
Loans held for sale | 337 | 323 |
Loans, net of allowance for loan losses, 2016, $5,321, 2015, $5,524 | 480,746 | 433,475 |
Other real estate owned, net of valuation allowance, 2016, $0, 2015, $224 | 250 | 2,679 |
Premises and equipment, net | 20,785 | 21,389 |
Accrued interest receivable | 1,746 | 1,661 |
Bank owned life insurance | 13,928 | 11,742 |
Core deposit intangibles, net | 1,551 | 2,322 |
Other assets | 5,817 | 5,927 |
Total assets | 716,000 | 692,321 |
Deposits: | ||
Noninterest-bearing demand deposits | 168,076 | 157,070 |
Savings and interest-bearing demand deposits | 349,067 | 328,945 |
Time deposits | 128,427 | 141,101 |
Total deposits | 645,570 | 627,116 |
Subordinated debt | 4,930 | 4,913 |
Junior subordinated debt | 9,279 | 9,279 |
Accrued interest payable and other liabilities | 4,070 | 5,060 |
Total liabilities | 663,849 | 646,368 |
Shareholders' Equity | ||
Preferred stock, par value $1.25 per share; authorized 1,000,000 shares; none issued and outstanding | ||
Common stock, par value $1.25 per share; authorized 8,000,000 shares; issued and outstanding, 2016, 4,929,403 shares, 2015, 4,916,130 shares | 6,162 | 6,145 |
Surplus | 7,093 | 6,956 |
Retained earnings | 39,756 | 34,440 |
Accumulated other comprehensive loss, net | (860) | (1,588) |
Total shareholders' equity | 52,151 | 45,953 |
Total liabilities and shareholders' equity | $ 716,000 | $ 692,321 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, at fair value | $ 52,709 | $ 66,438 |
Allowance for loan losses | 5,321 | 5,524 |
Other real estate owned, valuation allowance | $ 0 | $ 224 |
Preferred stock, par value | $ 1.25 | $ 1.25 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 1.25 | $ 1.25 |
Common stock, shares authorized | 8,000,000 | 8,000,000 |
Common stock, shares issued | 4,929,403 | 4,916,130 |
Common stock, shares outstanding | 4,929,403 | 4,916,130 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 21,662 | $ 19,138 |
Interest on deposits in banks | 238 | 197 |
Interest and dividends on securities: | ||
Taxable interest | 2,692 | 2,358 |
Tax-exempt interest | 564 | 395 |
Dividends | 81 | 77 |
Total interest and dividend income | 25,237 | 22,165 |
Interest Expense | ||
Interest on deposits | 1,353 | 1,150 |
Interest on federal funds purchased | 3 | 2 |
Interest on subordinated debt | 361 | 62 |
Interest on junior subordinated debt | 259 | 224 |
Interest on other borrowings | 6 | 3 |
Total interest expense | 1,982 | 1,441 |
Net interest income | 23,255 | 20,724 |
Recovery of loan losses | (100) | |
Net interest income after recovery of loan losses | 23,255 | 20,824 |
Noninterest Income | ||
Service charges on deposit accounts | 3,512 | 3,042 |
ATM and check card fees | 2,037 | 1,895 |
Wealth management fees | 1,362 | 1,975 |
Fees for other customer services | 581 | 606 |
Income from bank owned life insurance | 425 | 373 |
Net gains (losses) on calls and sales of securities available for sale | 8 | (55) |
Net gains on sale of loans | 144 | 201 |
Bargain purchase gain | 201 | |
Other operating income | 424 | 104 |
Total noninterest income | 8,493 | 8,342 |
Noninterest Expense | ||
Salaries and employee benefits | 12,939 | 13,850 |
Occupancy | 1,533 | 1,452 |
Equipment | 1,634 | 1,501 |
Marketing | 562 | 530 |
Supplies | 450 | 783 |
Legal and professional fees | 884 | 1,336 |
ATM and check card fees | 866 | 781 |
FDIC assessment | 426 | 384 |
Bank franchise tax | 372 | 513 |
Telecommunications expense | 451 | 436 |
Data processing expense | 593 | 700 |
Postage expense | 238 | 341 |
Amortization expense | 771 | 642 |
Other real estate owned (income) expense, net | (120) | 352 |
Net loss on disposal of premises and equipment | 8 | |
Other operating expense | 1,881 | 1,954 |
Total noninterest expense | 23,488 | 25,555 |
Income before income taxes | 8,260 | 3,611 |
Income tax expense | 2,353 | 956 |
Net income | 5,907 | 2,655 |
Effective dividend on preferred stock | 1,113 | |
Net income available to common shareholders | $ 5,907 | $ 1,542 |
Earnings per common share | ||
Basic | $ 1.20 | $ 0.31 |
Diluted | $ 1.20 | $ 0.31 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 5,907 | $ 2,655 |
Other comprehensive income (loss), net of tax: | ||
Unrealized holding losses on available for sale securities, net of tax ($341) and ($50), respectively | (663) | (95) |
Reclassification adjustment for (gains) losses included in net income, net of tax ($3) and $19, respectively | (5) | 36 |
Pension liability adjustment, net of tax $719 and $13, respectively | 1,396 | 25 |
Total other comprehensive income (loss) | 728 | (34) |
Total comprehensive income | $ 6,635 | $ 2,621 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding losses on available for sale securities, tax | $ (341) | $ (50) |
Reclassification adjustment for (gains) losses included in net income, tax | (3) | 19 |
Pension liability adjustment, tax | $ 719 | $ 13 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 5,907 | $ 2,655 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization of premises and equipment | 1,356 | 1,231 |
Amortization of core deposit intangibles | 771 | 642 |
Amortization of debt issuance costs | 17 | 3 |
Origination of loans held for sale | (9,281) | (14,163) |
Proceeds from sale of loans held for sale | 9,411 | 14,369 |
Net gains on sales of loans held for sale | (144) | (201) |
Recovery of loan losses | (100) | |
Net (gains) losses on calls and sales of securities available for sale | (8) | 55 |
Provision for other real estate owned | 27 | 230 |
Net gains on sale of other real estate owned | (193) | (74) |
Income from bank owned life insurance | (425) | (373) |
Accretion of discounts and amortization of premiums on securities, net | 842 | 721 |
Accretion of premium on time deposits | (167) | (227) |
Stock-based compensation | 113 | 99 |
Bargain purchase gain on branch acquisition | (201) | |
Losses on disposal of premises and equipment | 8 | |
Deferred income tax expense | 428 | 134 |
Changes in assets and liabilities: | ||
Increase in interest receivable | (85) | (400) |
Decrease in other assets | 26 | 40 |
Increase in accrued expenses and other liabilities | 406 | 161 |
Net cash provided by operating activities | 9,009 | 4,601 |
Cash Flows from Investing Activities | ||
Proceeds from maturities, calls, principal payments, and sales of securities available for sale | 22,826 | 17,725 |
Proceeds from maturities, calls, principal payments, and sales of securities held to maturity | 12,821 | 2,341 |
Purchases of securities available for sale | (13,615) | (40,723) |
Purchases of securities held to maturity | (68,995) | |
Net purchase of restricted securities | (157) | (25) |
Purchase of premises and equipment | (1,033) | (1,999) |
Proceeds from sale of premises and equipment | 23 | |
Proceeds from sale of other real estate owned | 2,882 | 717 |
Purchase of bank owned life insurance | (2,011) | (12) |
Proceeds from cash value of bank owned life insurance | 250 | |
Net increase in loans | (47,308) | (63,346) |
Acquisition of branches, net cash paid | 179,501 | |
Net cash (used in) provided by investing activities | (25,322) | 25,184 |
Cash Flows from Financing Activities | ||
Net increase in demand deposits and savings accounts | 31,128 | 17,514 |
Net decrease in time deposits | (12,507) | (21,311) |
Decrease in federal funds purchased | (52) | |
Net decrease in other borrowings | (26) | |
Proceeds from subordinated debt, net of issuance costs | 4,910 | |
Cash dividends paid on common stock, net of reinvestment | (550) | (454) |
Cash dividends paid on preferred stock | (1,281) | |
Repurchase of common stock | (1) | |
Redemption of preferred stock | (14,595) | |
Net cash provided by (used in) financing activities | 18,071 | (15,296) |
Increase in cash and cash equivalents | 1,758 | 14,489 |
Cash and Cash Equivalents | ||
Cash and cash equivalents, beginning of year | 39,334 | 24,845 |
Cash and cash equivalents, end of year | 41,092 | 39,334 |
Cash payments for: | ||
Interest | 2,172 | 1,685 |
Income taxes | 1,974 | 929 |
Supplemental Disclosures of Noncash Transactions | ||
Unrealized losses on securities available for sale | (1,012) | (90) |
Change in pension liability | 2,115 | 38 |
Transfer from loans to other real estate owned | 37 | 1,664 |
Transfer from premises and equipment to other real estate owned | 250 | |
Issuance of common stock, dividend reinvestment plan | $ 41 | 37 |
Transactions Related to Acquisition | ||
Assets acquired | 193,638 | |
Liabilities assumed | 186,819 | |
Net assets acquired | $ 6,819 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Beginning Balance at Dec. 31, 2014 | $ 59,564 | $ 14,595 | $ 6,131 | $ 6,835 | $ 33,557 | $ (1,554) |
Net income | 2,655 | 2,655 | ||||
Other comprehensive income (loss) | (34) | (34) | ||||
Cash dividends on common stock | (491) | (491) | ||||
Stock-based compensation | 99 | 99 | ||||
Issuance of common stock, dividend reinvestment plan | 37 | 5 | 32 | |||
Issuance of common stock, stock incentive plan | 9 | (9) | ||||
Repurchase of common stock, stock incentive plan | (1) | (1) | ||||
Cash dividends on preferred stock | (1,281) | (1,281) | ||||
Redemption of preferred stock | (14,595) | $ (14,595) | ||||
Ending Balance at Dec. 31, 2015 | 45,953 | 6,145 | 6,956 | 34,440 | (1,588) | |
Net income | 5,907 | 5,907 | ||||
Other comprehensive income (loss) | 728 | 728 | ||||
Cash dividends on common stock | (591) | (591) | ||||
Stock-based compensation | 113 | 113 | ||||
Issuance of common stock, dividend reinvestment plan | 41 | 5 | 36 | |||
Issuance of common stock, stock incentive plan | 12 | (12) | ||||
Ending Balance at Dec. 31, 2016 | $ 52,151 | $ 6,162 | $ 7,093 | $ 39,756 | $ (860) |
Consolidated Statements of Cha9
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash dividends on common stock, per share | $ 0.12 | $ 0.10 |
Issuance of common stock dividend reinvestment plan, shares | 3,949 | 4,109 |
Issuance of common stock incentive plan, shares | 9,324 | 7,582 |
Repurchase of common stock, stock incentive plan, shares | 138 | |
Common Stock [Member] | ||
Cash dividends on common stock, per share | $ 0.12 | $ 0.10 |
Issuance of common stock dividend reinvestment plan, shares | 3,949 | 4,109 |
Issuance of common stock incentive plan, shares | 9,324 | 7,582 |
Repurchase of common stock, stock incentive plan, shares | 138 |
Nature of Banking Activities an
Nature of Banking Activities and Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Nature of Banking Activities and Significant Accounting Policies | Note 1. Nature of Banking Activities and Significant Accounting Policies First National Corporation (the Company) is the bank holding company of First Bank (the Bank), First National (VA) Statutory Trust II (Trust II) and First National (VA) Statutory Trust III (Trust III). The Trusts were formed for the purpose of issuing redeemable capital securities, commonly known as trust preferred securities and are not included in the Company’s consolidated financial statements in accordance with authoritative accounting guidance because management has determined that the Trusts qualify as variable interest entities. The Bank owns First Bank Financial Services, Inc., which invests in entities that provide title insurance and investment services. The Bank owns Shen-Valley Land Holdings, LLC which holds other real estate owned. The Bank provides loan, deposit, wealth management and other products and services in the Shenandoah Valley and central regions of Virginia. Loan products and services include personal loans, residential mortgages, home equity loans and commercial loans. Deposit products and services include checking, savings, money market accounts, individual retirement accounts, certificates of deposit and cash management accounts. The Bank offers other services, including internet banking, mobile banking, remote deposit capture and other traditional banking services. The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to accepted practices within the banking industry. Principles of Consolidation The consolidated financial statements of First National Corporation include the accounts of all six companies. All material intercompany balances and transactions have been eliminated in consolidation, except for balances and transactions related to the Trusts. The subordinated debt of these Trusts is reflected as a liability of the Company. Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, valuation of other real estate owned, valuation of core deposit intangibles, pension obligations and other-than-temporary impairment of securities. Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within the Shenandoah Valley and central regions of Virginia. The types of lending that the Company engages in are included in Note 3. The Company has a concentration of credit risk in commercial real estate, but does not have a significant concentration to any one customer or industry. Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company has defined cash equivalents as those amounts included in the balance sheet captions “Cash and due from banks” and “Interest-bearing deposits in banks.” Securities Investments in debt securities with readily determinable fair values are classified as either held to maturity (HTM), available for sale (AFS) or trading based on management’s intent. Currently, all of the Company’s debt securities are classified as either AFS or HTM. Equity investments in the FHLB, the Federal Reserve Bank of Richmond and Community Bankers Bank are separately classified as restricted securities and are carried at cost. AFS securities are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), and HTM securities are carried at amortized cost. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains or losses on the sale of securities are recorded on the trade date using the amortized cost of the specific security sold. Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either the Company (1) intends to sell the security or (2) it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-than-likely that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income (loss). For equity securities carried at cost, such as restricted securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in income. The Company regularly reviews each security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Company, through its banking subsidiary, requires a firm purchase commitment from a permanent investor before loans held for sale can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Bank enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 60 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Bank commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Bank is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Bank determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. Because of the high correlation between rate lock commitments and best efforts contracts, no gain or loss occurs on the rate lock commitments. Loans The Company, through its banking subsidiary, grants mortgage, commercial and consumer loans to customers. The Bank segments its loan portfolio into real estate loans, commercial and industrial loans, and consumer and other loans. Real estate loans are further divided into the following classes: Construction and Land Development; 1-4 Real Estate Loans – Construction and Land Development one-to-four Real Estate Loans – 1-4 Family one-to-four Real Estate Loans – Other Commercial and Industrial Loans: non-real Consumer and Other Loans A substantial portion of the loan portfolio is represented by residential and commercial loans secured by real estate throughout the Shenandoah Valley region of Virginia. The ability of the Bank’s debtors to honor their contracts may be impacted by the real estate and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on non-accrual non-accrual All interest accrued but not collected for loans that are placed on non-accrual Any unsecured loan that is deemed uncollectible is charged-off charged-off charge-off Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value (net of selling costs), and the probability of collecting scheduled principal and interest payments when due. Additionally, management generally evaluates substandard and doubtful loans greater than $250 thousand for impairment. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case loan-by-loan Troubled Debt Restructurings (TDR) In situations where, for economic or legal reasons related to a borrower’s financial condition, management grants a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. TDRs are considered impaired loans. Upon designation as a TDR, the Company evaluates the borrower’s payment history, past due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Company concludes that the borrower is able to make such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on non-accrual non-accrual Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for (or recovery of) loan losses charged to earnings. Loan losses are charged against the allowance when management determines that the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. For further information about the Company’s loans and the allowance for loan losses, see Notes 3 and 4. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The Company performs regular credit reviews of the loan portfolio to review credit quality and adherence to underwriting standards. The credit reviews consist of reviews by its internal credit administration department and reviews performed by an independent third party. Upon origination, each loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk. This risk rating scale is our primary credit quality indicator. The Company has various committees that review and ensure that the allowance for loans losses methodology is in accordance with GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio. The allowance represents an amount that, in management’s judgment, will be adequate to absorb any losses on existing loans that may become uncollectible. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of the collateral, overall portfolio quality and review of specific potential losses. The evaluation also considers the following risk characteristics of each loan portfolio class: • 1-4 • Real estate construction and land development loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. • Other real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. • Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much reliability. • Consumer and other loans carry risk associated with the continued creditworthiness of the borrower and the value of the collateral, i.e. rapidly depreciating assets such as automobiles, or lack thereof. Consumer loans are likely to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy, or other changes in circumstances. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are classified as impaired, and is established when the discounted cash flows, fair value of collateral less estimated costs to sell or observable market price of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal is ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions among other considerations. The general component covers loans that are not considered impaired and is based on historical loss experience adjusted for qualitative factors. The historical loss experience is calculated by loan type and uses an average loss rate during the preceding twelve quarters. The qualitative factors are assigned by management based on delinquencies and asset quality, national and local economic trends, effects of the changes in the value of underlying collateral, trends in volume and nature of loans, effects of changes in the lending policy, the experience and depth of management, concentrations of credit, quality of the loan review system and the effect of external factors such as competition and regulatory requirements. The factors assigned differ by loan type. The general allowance estimates losses whose impact on the portfolio has yet to be recognized by a specific allowance. Allowance factors and the overall size of the allowance may change from period to period based on management’s assessment of the above described factors and the relative weights given to each factor. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three years to forty years; leasehold improvements are amortized over the lives of the respective leases or the estimated useful life of the leasehold improvement, whichever is less. Software is amortized over its estimated useful life ranging from three to seven years. Depreciation and amortization are recorded on the straight-line method. Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. Other Real Estate Owned Other real estate owned (OREO) consists of properties obtained through a foreclosure proceeding or through an in-substance Bank-Owned Life Insurance The Company owns insurance on the lives of a certain group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and any increase in cash surrender value is recorded as income from bank owned life insurance on the consolidated statements of income. In the event of the death of an insured individual under these policies, the Company receives a death benefit which is recorded as other income. For the year ended December 31, 2016, the Company recorded $102 thousand of death benefits received as other income under these policies. The Company did not receive any death benefits for the year ended December 31, 2015. Intangible Assets Intangible assets consist of core deposit intangible assets arising from branch acquisitions which are amortized on an accelerated method over their estimated useful lives, which range from six to nine years. Stock Based Compensation Compensation cost is recognized for restricted stock units and other stock awards issued to employees and directors based on the fair value of the awards at the date of grant. The market price of the Company’s common stock at the date of grant is used to estimate the fair value of restricted stock units and other stock awards. Retirement Plans Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions and Bank discretionary matches. Transfers of Financial Assets Transfers of financial assets, including loan participations, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes”. Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. See Note 11 for details on the Company’s income taxes. The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carry forward periods, experience with utilization of operating loss and tax credit carry forwards not expiring, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not Wealth Management Department Securities and other property held by the wealth management department in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. Earnings Per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Shares not committed to be released under the Company’s leveraged Employee Stock Ownership Plan (ESOP) are not considered to be outstanding. See Note 14 for further information regarding earnings per common share and see Note 13 for further information on the Company’s ESOP. Advertising Costs The Company follows the policy of charging the production costs of advertising to expense as incurred. Total advertising expense incurred for 2016 and 2015 was $402 thousand and $400 thousand, respectively. Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the consolidated financial statements. Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. Recent Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, 205-40): 2014-15 In January 2016, the FASB issued ASU 2016-01, 825-10): 2016-01, 2016-01 In February 2016, the FASB issued ASU 2016-02, 2016-02, right-of-use 2016-02 In March 2016, the FASB issued ASU No. 2016-07, 2016-07, step-by-step available-for-sale 2016-07 In March 2016, the FASB issued ASU No. 2016-09, 2016-09 In June 2016, the FASB issued ASU No. 2016-13, available-for-sale 2016-13 In August 2016, the FASB issued ASU No. 2016-15, 2016-15 In January 2017, the FASB issued ASU No. 2017-01, 2017-01 In January 2017, the FASB issued ASU No. 2017-04, 2017-04 |
Securities
Securities | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 2. Securities The Company invests in U.S. agency and mortgage-backed securities, obligations of states and political subdivisions, corporate equity securities, and corporate debt securities. Amortized costs and fair values of securities at December 31, 2016 and 2015 were as follows (in thousands): 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: U.S. agency and mortgage-backed securities $ 81,451 $ 177 $ (1,457 ) $ 80,171 Obligations of states and political subdivisions 14,654 146 (180 ) 14,620 Corporate equity securities 1 10 — 11 Total securities available for sale $ 96,106 $ 333 $ (1,637 ) $ 94,802 Securities held to maturity: U.S. agency and mortgage-backed securities $ 37,269 $ 1 $ (483 ) $ 36,787 Obligations of states and political subdivisions 14,629 18 (211 ) 14,436 Corporate debt securities 1,500 — (14 ) 1,486 Total securities held to maturity $ 53,398 $ 19 $ (708 ) $ 52,709 Total securities $ 149,504 $ 352 $ (2,345 ) $ 147,511 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: U.S. agency and mortgage-backed securities $ 89,919 $ 261 $ (843 ) $ 89,337 Obligations of states and political subdivisions 15,931 333 (50 ) 16,214 Corporate equity securities 1 7 — 8 Total securities available for sale $ 105,851 $ 601 $ (893 ) $ 105,559 Securities held to maturity: U.S. agency and mortgage-backed securities $ 49,662 $ 36 $ (326 ) $ 49,372 Obligations of states and political subdivisions 15,357 228 (19 ) 15,566 Corporate debt securities 1,500 — — 1,500 Total securities held to maturity $ 66,519 $ 264 $ (345 ) $ 66,438 Total securities $ 172,370 $ 865 $ (1,238 ) $ 171,997 At December 31, 2016 and 2015, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands): 2016 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value (Loss) Fair Value (Loss) Fair Value (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 60,943 $ (1,249 ) $ 5,499 $ (208 ) $ 66,442 $ (1,457 ) Obligations of states and political subdivisions 5,130 (180 ) — — 5,130 (180 ) Total securities available for sale $ 66,073 $ (1,429 ) $ 5,499 $ (208 ) $ 71,572 $ (1,637 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 34,770 $ (483 ) $ — $ — $ 34,770 $ (483 ) Obligations of states and political subdivisions 12,724 (211 ) — — 12,724 (211 ) Corporate debt securities 1,486 (14 ) — — 1,486 (14 ) Total securities held to maturity $ 48,980 $ (708 ) $ — $ — $ 48,980 $ (708 ) Total securities $ 115,053 $ (2,137 ) $ 5,499 $ (208 ) $ 120,552 $ (2,345 ) 2015 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value (Loss) Fair Value (Loss) Fair Value (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 50,185 $ (464 ) $ 13,409 $ (379 ) $ 63,594 $ (843 ) Obligations of states and political subdivisions 2,395 (15 ) 1,053 (35 ) 3,448 (50 ) Total securities available for sale $ 52,580 $ (479 ) $ 14,462 $ (414 ) $ 67,042 $ (893 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 32,791 $ (326 ) $ — $ — $ 32,791 $ (326 ) Obligations of states and political subdivisions 3,052 (19 ) — — 3,052 (19 ) Total securities held to maturity $ 35,843 $ (345 ) $ — $ — $ 35,843 $ (345 ) Total securities $ 88,423 $ (824 ) $ 14,462 $ (414 ) $ 102,885 $ (1,238 ) The tables above provide information about securities that have been in an unrealized loss position for less than twelve consecutive months and securities that have been in an unrealized loss position for twelve consecutive months or more. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Impairment is considered to be other-than-temporary if the Company (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its cost, or (3) does not expect to recover the security’s entire amortized cost basis. Presently, the Company does not intend to sell any of these securities, does not expect to be required to sell these securities, and expects to recover the entire amortized cost of all the securities. At December 31, 2016, there were sixty-four U.S. agency and mortgage-backed securities, fifty obligations of states and political subdivisions, and one corporate debt security in an unrealized loss position. One hundred percent of the Company’s investment portfolio is considered investment grade. The weighted-average re-pricing fifty-two re-pricing The amortized cost and fair value of securities at December 31, 2016 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date. Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due within one year $ 471 $ 473 $ — $ — Due after one year through five years 10,550 10,520 1,776 1,771 Due after five years through ten years 13,984 13,825 18,174 18,029 Due after ten years 71,100 69,973 33,448 32,909 Corporate equity securities 1 11 — — $ 96,106 $ 94,802 $ 53,398 $ 52,709 Proceeds from maturities, calls, principal payments, and sales of securities available for sale during 2016 and 2015 were $22.8 million and $17.7 million, respectively. Gross gains of $22 thousand were realized on calls and sales during 2016. There were no gross gains realized on calls and sales during 2015. Gross losses of $14 thousand and $55 thousand were realized on calls and sales during 2016 and 2015, respectively. Proceeds from maturities, calls, and principal payments, and sales of securities held to maturity during 2016 and 2015 were $12.8 million and $2.3 million. For the year ended December 31, 2016, the Company sold one security from the held to maturity portfolio. The Company recognized no gain or loss related to the sale as the carrying value of the security sold equaled the proceeds from the sale of $657 thousand. The sale of this security was in response to credit deterioration of the issuer. There were no sales of securities from the held to maturity portfolio for the year ended December 31, 2015. The Company did not realize any gross gains or gross losses on held to maturity securities during 2016 or 2015. Securities having a fair value of $27.7 million and $26.9 million at December 31, 2016 and 2015 were pledged to secure public deposits and for other purposes required by law. Federal Home Loan Bank, Federal Reserve Bank and Community Bankers’ Bank stock are generally viewed as long-term investments and as restricted securities, which are carried at cost, because there is a minimal market for the stock. Therefore, when evaluating restricted securities for impairment, their value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider these investments to be other-than-temporarily impaired at December 31, 2016, and no impairment has been recognized. The composition of restricted securities at December 31, 2016 and 2015 was as follows (in thousands): 2016 2015 Federal Home Loan Bank stock $ 623 $ 466 Federal Reserve Bank stock 875 875 Community Bankers’ Bank stock 50 50 $ 1,548 $ 1,391 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans | Note 3. Loans Loans at December 31, 2016 and 2015 are summarized as follows (in thousands): 2016 2015 Real estate loans: Construction and land development $ 34,699 $ 33,135 Secured by 1-4 198,763 189,286 Other real estate 211,210 181,447 Commercial and industrial loans 29,981 24,048 Consumer and other loans 11,414 11,083 Total loans $ 486,067 $ 438,999 Allowance for loan losses (5,321 ) (5,524 ) Loans, net $ 480,746 $ 433,475 Net deferred loan fees included in the above loan categories were $142 thousand at December 31, 2016 and net deferred loan costs included in the above loan categories were $54 thousand at December 31, 2015. Consumer and other loans included $264 thousand and $257 thousand of demand deposit overdrafts at December 31, 2016 and 2015, respectively. The following tables provide a summary of loan classes and an aging of past due loans as of December 31, 2016 and 2015 (in thousands): December 31, 2016 30-59 60-89 > 90 Total Current Total Non- 90 Days Real estate loans: Construction and land development $ — $ 40 $ — $ 40 $ 34,659 $ 34,699 $ 1,033 $ — 1-4 980 170 410 1,560 197,203 198,763 413 84 Other real estate loans 321 701 — 1,022 210,188 211,210 74 — Commercial and industrial 36 309 32 377 29,604 29,981 — 32 Consumer and other loans 19 7 — 26 11,388 11,414 — — Total $ 1,356 $ 1,227 $ 442 $ 3,025 $ 483,042 $ 486,067 $ 1,520 $ 116 December 31, 2015 30-59 60-89 > 90 Total Current Total Non- 90 Days Real estate loans: Construction and land development $ — $ — $ — $ — $ 33,135 $ 33,135 $ 1,269 $ — 1-4 635 18 264 917 188,369 189,286 346 — Other real estate loans 387 358 790 1,535 179,912 181,447 2,145 — Commercial and industrial — — 92 92 23,956 24,048 94 92 Consumer and other loans 20 — — 20 11,063 11,083 — — Total $ 1,042 $ 376 $ 1,146 $ 2,564 $ 436,435 $ 438,999 $ 3,854 $ 92 Credit Quality Indicators As part of the ongoing monitoring of the credit quality of the Company’s loan portfolio, management tracks certain credit quality indicators including trends related to the risk grading of specified classes of loans. The Company utilizes a risk grading matrix to assign a rating to each of its loans. The loan ratings are summarized into the following categories: pass, special mention, substandard, doubtful and loss. Pass rated loans include all risk rated credits other than those included in special mention, substandard or doubtful. Loans classified as loss are charged-off. Pass – Special Mention – Substandard – Doubtful – non-accrual Loss – The following tables provide an analysis of the credit risk profile of each loan class as of December 31, 2016 and 2015 (in thousands): December 31, 2016 Pass Special Substandard Doubtful Total Real estate loans: Construction and land development $ 29,416 $ 2,402 $ 2,881 $ — $ 34,699 Secured by 1-4 193,395 3,295 2,073 — 198,763 Other real estate loans 200,009 6,990 4,211 — 211,210 Commercial and industrial 29,456 386 139 — 29,981 Consumer and other loans 11,414 — — — 11,414 Total $ 463,690 $ 13,073 $ 9,304 $ — $ 486,067 December 31, 2015 Pass Special Substandard Doubtful Total Real estate loans: Construction and land development $ 26,371 $ 2,587 $ 4,177 $ — $ 33,135 Secured by 1-4 182,595 3,376 3,315 — 189,286 Other real estate loans 165,310 9,977 6,160 — 181,447 Commercial and industrial 23,351 432 265 — 24,048 Consumer and other loans 11,083 — — — 11,083 Total $ 408,710 $ 16,372 $ 13,917 $ — $ 438,999 |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Note 4. Allowance for Loan Losses The following tables present, as of December 31, 2016 and 2015, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands). December 31, 2016 Construction Secured by 1-4 Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2015 $ 1,532 $ 939 $ 2,534 $ 306 $ 213 $ 5,524 Charge-offs — (83 ) (165 ) — (540 ) (788 ) Recoveries 4 293 2 11 275 585 Provision for (recovery of) loan losses (1,095 ) (130 ) 771 63 391 — Ending Balance, December 31, 2016 $ 441 $ 1,019 $ 3,142 $ 380 $ 339 $ 5,321 Ending Balance: Individually evaluated for impairment — 37 — — — 37 Collectively evaluated for impairment 441 982 3,142 380 339 5,284 Loans: Ending Balance 34,699 198,763 211,210 29,981 11,414 486,067 Individually evaluated for impairment 1,973 1,828 984 75 — 4,860 Collectively evaluated for impairment 32,726 196,935 210,226 29,906 11,414 481,207 December 31, 2015 Construction Secured by 1-4 Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2014 $ 1,403 $ 1,204 $ 3,658 $ 310 $ 143 $ 6,718 Charge-offs — (142 ) (1,125 ) (59 ) (512 ) (1,838 ) Recoveries 4 373 2 72 293 744 Provision for (recovery of) loan losses 125 (496 ) (1 ) (17 ) 289 (100 ) Ending Balance, December 31, 2015 $ 1,532 $ 939 $ 2,534 $ 306 $ 213 $ 5,524 Ending Balance: Individually evaluated for impairment 326 23 195 — — 544 Collectively evaluated for impairment 1,206 916 2,339 306 213 4,980 Loans: Ending Balance 33,135 189,286 181,447 24,048 11,083 438,999 Individually evaluated for impairment 2,544 2,044 3,023 94 — 7,705 Collectively evaluated for impairment 30,591 187,242 178,424 23,954 11,083 431,294 Impaired loans and the related allowance at December 31, 2016 and 2015, were as follows (in thousands): December 31, 2016 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 2,388 $ 1,973 $ — $ 1,973 $ — $ 2,407 $ 66 Secured by 1-4 1,851 1,675 153 1,828 37 2,013 87 Other real estate loans 1,213 984 — 984 — 2,529 22 Commercial and industrial 93 75 — 75 — 85 1 Consumer and other loans — — — — — — — Total $ 5,545 $ 4,707 $ 153 $ 4,860 $ 37 $ 7,034 $ 176 December 31, 2015 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 2,741 $ 2,206 $ 338 $ 2,544 $ 326 $ 2,967 $ 60 Secured by 1-4 2,116 2,021 23 2,044 23 2,526 107 Other real estate loans 3,492 2,463 560 3,023 195 4,933 58 Commercial and industrial 107 94 — 94 — 118 — Consumer and other loans — — — — — — — Total $ 8,456 $ 6,784 $ 921 $ 7,705 $ 544 $ 10,544 $ 225 The “Recorded Investment” amounts in the table above represent the outstanding principal balance on each loan represented in the table. The “Unpaid Principal Balance” represents the outstanding principal balance on each loan represented in the table plus any amounts that have been charged off on each loan and/or payments that have been applied towards principal on non-accrual As of December 31, 2016, loans classified as troubled debt restructurings (TDRs) and included in impaired loans in the disclosure above totaled $460 thousand. At December 31, 2016, $300 thousand of the loans classified as TDRs were performing under the restructured terms and were not considered non-performing 1-4 For the year ended Number of Pre- Post- Real estate loans: Construction — $ — $ — Secured by 1-4 1 138 88 Other real estate loans — — — Commercial and industrial — — — Consumer and other loans — — — Total 1 $ 138 $ 88 The troubled debt restructuring described above increased the allowance for loan losses by $32 thousand and resulted in a charge-off For the years ended December 31, 2016 and 2015, there were no troubled debt restructurings that subsequently defaulted within twelve months of the loan modification. Management defines default as over ninety days past due or the foreclosure and repossession of the collateral or charge-off There were no non-accrual non-accrual |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Other Real Estate Owned | Note 5. Other Real Estate Owned Changes in the balance for OREO are as follows (in thousands): 2016 2015 Balance at the beginning of year, gross $ 2,903 $ 2,263 Transfers in 287 1,664 Charge-offs (251 ) (381 ) Sales proceeds (2,882 ) (717 ) Gain on disposition 193 74 Balance at the end of year, gross $ 250 $ 2,903 Less: valuation allowance — (224 ) Balance at the end of year, net $ 250 $ 2,679 There were no residential real estate properties included in the ending OREO balances above at December 31, 2016. The carrying amounts of residential real estate properties included in the ending OREO balances above totaled $627 thousand at December 31, 2015. The Bank did not have any consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings were in process as of December 31, 2016. Changes in the allowance for OREO losses are as follows (in thousands): 2016 2015 Balance at beginning of year $ 224 $ 375 Provision for losses 27 230 Charge-offs, net (251 ) (381 ) Balance at end of year $ — $ 224 Net expenses applicable to OREO, other than the provision for losses, were $46 thousand and $196 thousand for the years ended December 31, 2016 and 2015, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Note 6. Premises and Equipment Premises and equipment are summarized as follows at December 31, 2016 and 2015 (in thousands): 2016 2015 Land $ 4,796 $ 4,974 Buildings and leasehold improvements 18,524 19,390 Furniture and equipment 5,836 11,251 Construction in process 216 20 $ 29,372 $ 35,635 Less accumulated depreciation 8,587 14,246 $ 20,785 $ 21,389 Depreciation expense included in operating expenses for 2016 and 2015 was $1.4 million and $1.2 million, respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Deposits | Note 7. Deposits The aggregate amount of time deposits, in denominations of $250 thousand or more, was $10.1 million and $10.6 million at December 31, 2016 and 2015, respectively. The Bank obtains certain deposits through the efforts of third-party brokers. At December 31, 2016 and 2015, brokered deposits totaled $601 thousand and $600 thousand, respectively, and were included in time deposits on the Company’s consolidated financial statements. At December 31, 2016, the scheduled maturities of time deposits were as follows (in thousands): 2017 $ 60,894 2018 24,587 2019 14,505 2020 14,678 2021 12,289 Thereafter 1,474 $ 128,427 |
Other Borrowings
Other Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Other Borrowings | Note 8. Other Borrowings The Bank had unused lines of credit totaling $125.6 million and $128.1 million available with non-affiliated |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Dec. 31, 2016 | |
Brokers and Dealers [Abstract] | |
Subordinated Debt | Note 9. Subordinated Debt On October 30, 2015, the Company entered into a Subordinated Loan Agreement (the Agreement) pursuant to which the Company issued an interest only subordinated term note due 2025 in the aggregate principal amount of $5.0 million (the Note). The Note bears interest at a fixed rate of 6.75% per annum. The Note qualifies as Tier 2 capital for regulatory capital purposes and at December 31, 2016, the total amount of subordinated debt issued was included in the Company’s Tier 2 capital. Unamortized debt issuance costs related to the Note were $70 thousand and $87 thousand at December 31, 2016 and 2015, respectively. The Note has a maturity date of October 1, 2025. Subject to regulatory approval, the Company may prepay the Note, in part or in full, beginning on October 30, 2020. The Note is an unsecured, subordinated obligation of the Company and ranks junior in right of payment to the Company’s senior indebtedness and to the Company’s obligations to its general creditors. The Note ranks equally with all other unsecured subordinated debt, except any which by its terms is expressly stated to be subordinated to the Note. The Note ranks senior to all current and future junior subordinated debt obligations, preferred stock and common stock of the Company. The Note is not convertible into common stock or preferred stock. The Agreement contains customary events of default such as the bankruptcy of the Company and the non-payment |
Junior Subordinated Debt
Junior Subordinated Debt | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debt | Note 10. Junior Subordinated Debt On June 8, 2004, First National (VA) Statutory Trust II (Trust II), a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable capital securities, commonly known as trust preferred securities. On June 17, 2004, $5.0 million of trust preferred securities were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest. The interest rate at December 31, 2016 and 2015 was 3.59% and 3.13%, respectively. The securities have a mandatory redemption date of June 17, 2034, and were subject to varying call provisions that began September 17, 2009. The principal asset of Trust II is $5.2 million of the Company’s junior subordinated debt with maturities and interest rates comparable to the trust preferred securities. The Trust’s obligations under the trust preferred securities are fully and unconditionally guaranteed by the Company. The Company is current on its interest payments on the junior subordinated debt. On July 24, 2006, First National (VA) Statutory Trust III (Trust III), a wholly-owned subsidiary of the Company, was formed for the purpose of issuing redeemable capital securities. On July 31, 2006, $4.0 million of trust preferred securities were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest. The interest rate at December 31, 2016 and 2015 was 2.45% and 1.93%, respectively. The securities have a mandatory redemption date of October 1, 2036, and were subject to varying call provisions that began October 1, 2011. The principal asset of Trust III is $4.1 million of the Company’s junior subordinated debt with maturities and interest rates comparable to the trust preferred securities. The Trust’s obligations under the trust preferred securities are fully and unconditionally guaranteed by the Company. The Company is current on its interest payments on the junior subordinated debt. While these securities are debt obligations of the Company, they are included in capital for regulatory capital ratio calculations. Under present regulations, the junior subordinated debt may be included in Tier 1 capital for regulatory capital adequacy purposes as long as their amount does not exceed 25% of Tier 1 capital, including total junior subordinated debt. The portion of the junior subordinated debt not considered as Tier 1 capital, if any, may be included in Tier 2 capital. At December 31, 2016 and December 31, 2015, the total amount of junior subordinated debt issued by the Trusts was included in the Company’s Tier 1 capital. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The Company is subject to U.S. federal and Virginia income tax as well as bank franchise tax in the state of Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2013. Net deferred tax assets consisted of the following components at December 31, 2016 and 2015 (in thousands): 2016 2015 Deferred Tax Assets Allowance for loan losses $ 1,809 $ 1,878 Allowance for other real estate owned — 76 Unfunded pension liability — 719 Gain on other real estate owned — 672 Securities available for sale 447 102 Accrued pension 689 568 Core deposit intangible 371 179 Unvested stock-based compensation 19 11 Limited partnership investments 17 — Loan origination fees, net 48 — $ 3,400 $ 4,205 Deferred Tax Liabilities Depreciation $ 708 $ 693 Discount accretion 2 2 Loan origination costs, net — 18 $ 710 $ 713 Net deferred tax assets $ 2,690 $ 3,492 The income tax expense for the years ended December 31, 2016 and 2015 consisted of the following (in thousands): 2016 2015 Current tax expense $ 1,925 $ 822 Deferred tax expense 428 134 $ 2,353 $ 956 The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2016 and 2015, due to the following (in thousands): 2016 2015 Computed tax expense at statutory federal rate $ 2,808 $ 1,227 Decrease in income taxes resulting from: Tax-exempt (254 ) (201 ) Other (201 ) (70 ) $ 2,353 $ 956 |
Funds Restrictions and Reserve
Funds Restrictions and Reserve Balance | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Funds Restrictions and Reserve Balance | Note 12. Funds Restrictions and Reserve Balance Transfers of funds from the banking subsidiary to the parent company in the form of loans, advances and cash dividends are restricted by federal and state regulatory authorities. At December 31, 2016, the aggregate amount of unrestricted funds which could be transferred from the banking subsidiary to the parent company, without prior regulatory approval, totaled $1.9 million. The amount of unrestricted funds is determined by subtracting the total dividend payments of the Bank from the Bank’s net income for that year, combined with the Bank’s retained net income for the preceding two years. Beginning on January 1, 2017, the Bank could not transfer funds to the Company without prior approval from regulatory authorities under current supervisory practices. The Bank must maintain a reserve against its deposits in accordance with Regulation D of the Federal Reserve Act. For the final weekly reporting period in the years ended December 31, 2016 and 2015, the aggregate amounts of daily average required balances were approximately $6.0 million and $5.6 million, respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Benefit Plans | Note 13. Benefit Plans Pension Plan The Bank has a noncontributory, defined benefit pension plan for all full-time employees over 21 years of age with at least one year of credited service and hired prior to May 1, 2011. Effective May 1, 2011, the plan was frozen to new participants. Only individuals employed on or before April 30, 2011 were eligible to become participants in the plan upon satisfaction of the eligibility requirements. Benefits are generally based upon years of service and average compensation for the five highest-paid consecutive years of service. The Bank’s funding practice has been to make at least the minimum required annual contribution permitted by the Employee Retirement Income Security Act of 1974, as amended, and the Internal Revenue Code of 1986, as amended. On September 14, 2016, the defined benefit pension plan was amended to be terminated and the amendment has been submitted to the Internal Revenue Service and the Pension Benefit Guarantee Corporation for approval. Under the amendment, benefit accruals ceased as of November 30, 2016. Although an application for termination approval is in process, the date of possible Internal Revenue Service approval is unknown and there can be no assurance of when the plan will be terminated. The funding status of the plan upon termination is not expected to be significantly different from the funded status disclosed in the table below. The benefit obligation is not expected to change at termination and the fair value of assets at termination is not expected to change significantly at termination as the assets are expected to remain in the cash and equivalents category through the termination date. The following tables provide a reconciliation of the changes in the plan benefit obligation and the fair value of assets for the periods ended December 31, 2016 and 2015 (in thousands). 2016 2015 Change in Benefit Obligation Benefit obligation, beginning of year $ 8,107 $ 7,729 Service cost 410 446 Interest cost 331 302 Actuarial loss (gain) 245 (271 ) Benefits paid (695 ) (99 ) Gain due to curtailment (2,621 ) — Benefit obligation, end of year $ 5,777 $ 8,107 Changes in Plan Assets Fair value of plan assets, beginning of year $ 4,264 $ 4,368 Actual return on plan assets 124 (5 ) Benefits paid (695 ) (99 ) Fair value of assets, end of year $ 3,693 $ 4,264 Funded Status, end of year $ (2,084 ) $ (3,843 ) Amount Recognized in Other Liabilities $ (2,084 ) $ (3,843 ) 2016 2015 Amounts Recognized in Accumulated Other Comprehensive Loss, net of tax Net loss $ — $ 2,115 Deferred income tax benefit — (719 ) Amount recognized $ — $ 1,396 Weighted Average Assumptions Used to Determine Benefit Obligation Discount rate used for disclosure First five years 1.47 % 4.25 % Five years to twenty years 3.34 % 4.25 % After twenty years 4.30 % 4.25 % Expected return on plan assets 7.50 % 7.50 % Rate of compensation increase 3.00 % 3.00 % Components of Net Periodic Benefit Cost Service cost $ 410 $ 446 Interest cost 331 302 Expected return on plan assets (297 ) (314 ) Recognized net gain due to curtailment (173 ) — Recognized net actuarial loss 84 86 Net periodic benefit cost $ 355 $ 520 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net gain $ (2,115 ) $ (38 ) Total recognized in other comprehensive income (loss) $ (2,115 ) $ (38 ) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss) $ (1,760 ) $ 482 Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost Discount rate 4.25 % 4.00 % Expected return on plan assets 7.50 % 7.50 % Rate of compensation increase 3.00 % 3.00 % The plan sponsor selects the expected long-term rate of return on assets assumption in consultation with their investment advisors and actuary. This rate is intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience, which may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions. Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period during which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) The process used to select the discount rate assumption takes into account the benefit cash flow and the segmented yields on high-quality corporate bonds that would be available to provide for the payment of the benefit cash flow. A single effective discount rate, rounded to the nearest .25%, is then established that produces an equivalent discounted present value. The pension plan’s weighted-average asset allocations at the end of the plan year for 2016 and 2015, by asset category were as follows: 2016 2015 Asset Category Mutual funds - fixed income — 40 % Mutual funds - equity — 60 % Cash and equivalents 100 % — Total 100 % 100 % It is the responsibility of the trustee to administer the investments of the trust within reasonable costs, being careful to avoid sacrificing quality. These costs include, but are not limited to, management and custodial fees, consulting fees, transaction costs and other administrative costs chargeable to the trust. Following is a description of the valuation methodologies used for assets measured at fair value. Fixed income and equity funds: year-end. The pension financial instruments measured and reported at fair value are classified and disclosed in one of the following categories: • Level 1 Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2 Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. • Level 3 Inputs to the valuation methodology are unobservable and significant to the fair value measurement. The following tables set forth by level, within the fair value hierarchy, the Company’s pension plan assets at fair value as of December 31, 2016 and 2015 (in thousands): Fair Value Measurements at December 31, 2016 Total Level 1 Level 2 Level 3 Cash and equivalents $ 3,693 $ 3,693 $ — $ — Total $ 3,693 $ 3,693 $ — $ — Fair Value Measurements at December 31, 2015 Total Level 1 Level 2 Level 3 Fixed income funds $ 1,720 $ 1,720 $ — $ — Equity funds 2,544 2,544 — — Total $ 4,264 $ 4,264 $ — $ — The Company did not make a cash contribution during the years ended December 31, 2016 and 2015. The Company expects to make a contribution of $2.1 million upon termination. The accumulated benefit obligation for the defined benefit pension plan was $5.8 million and $5.6 million at December 31, 2016 and 2015, respectively. Estimated future benefit payments, which reflect expected future service, as appropriate, were as follows at December 31, 2016 (in thousands): 2017 $ 369 2018 5,408 2019 — 2020 — 2021 — Years 2022-2026 — 401(k) Plan The Company maintains a 401(k) plan for all eligible employees. Participating employees may elect to contribute up to the maximum percentage allowed by the Internal Revenue Service, as defined in the plan. The Company makes matching contributions, on a dollar-for Employee Stock Ownership Plan On January 1, 2000, the Company established an employee stock ownership plan. The ESOP provides an opportunity for the Company to award shares of First National Corporation stock to employees at its discretion. Employees are eligible to participate in the ESOP effective immediately upon beginning service with the Company. Participants become 100% vested after two years of credited service. The Board of Directors may make discretionary contributions, within certain limitations prescribed by federal tax regulations. There was no compensation expense for the ESOP for the years ended December 31, 2016 and 2015. Shares of the Company held by the ESOP at December 31, 2016 and 2015 were 247,283 and 208,168, respectively. On September 14, 2016, the ESOP was amended to freeze the plan to new participants and to cease all contributions, effective December 31, 2016. The amendment also directs matching contributions and certain other retirement contributions made by the Company to the 401(k) plan. The ESOP shall be maintained as a frozen plan and continue to be invested in Company stock and such other assets as permitted under the ESOP and Trust Agreement for the benefit of participants and their beneficiaries. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Note 14. Earnings per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The following table presents the computation of basic and diluted earnings per share for the years ended December 31, 2016 and 2015 (dollars in thousands, except per share data): 2016 2015 (Numerator): Net income $ 5,907 $ 2,655 Effective dividend on preferred stock — 1,113 Net income available to common shareholders $ 5,907 $ 1,542 (Denominator): Weighted average shares outstanding – basic 4,924,636 4,910,608 Potentially dilutive common shares – restricted stock units 3,548 2,566 Weighted average shares outstanding – diluted 4,928,184 4,913,174 Income per common share Basic $ 1.20 $ 0.31 Diluted $ 1.20 $ 0.31 |
Commitments and Unfunded Credit
Commitments and Unfunded Credits | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Unfunded Credits | Note 15. Commitments and Unfunded Credits The Company, through its banking subsidiary is a party to credit related financial instruments with risk not reflected in the consolidated financial statements in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Bank’s exposure to credit loss is represented by the contractual amount of these commitments. The Bank follows the same credit policies in making commitments as it does for on-balance-sheet At December 31, 2016 and 2015, the following financial instruments were outstanding whose contract amounts represent credit risk (in thousands): 2016 2015 Commitments to extend credit and unfunded commitments under lines of credit $ 71,421 $ 61,115 Stand-by 8,983 7,732 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Bank, is based on management’s credit evaluation of the customer. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are collateralized as deemed necessary and usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Bank is committed. Commercial and standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank generally holds collateral supporting those commitments if deemed necessary. At December 31, 2016, the Bank had $10.1 million in locked-rate commitments to originate mortgage loans and $337 thousand in loans held for sale. Risks arise from the possible inability of counterparties to meet the terms of their contracts. The Bank does not expect any counterparty to fail to meet its obligations. The Bank has cash accounts in other commercial banks. The amount on deposit at these banks at December 31, 2016 exceeded the insurance limits of the Federal Deposit Insurance Corporation by $17 thousand. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Note 16. Transactions with Related Parties During the year, executive officers and directors (and companies controlled by them) were customers of and had transactions with the Company in the normal course of business. In management’s opinion, these transactions were made on substantially the same terms as those prevailing for other customers. At December 31, 2016 and 2015, these loans totaled $148 thousand and $593 thousand, respectively. During 2016, total principal additions were $165 thousand and total principal payments were $17 thousand. Adjustments to related party loan balances during 2016 due to transition of related parties totaled approximately $593 thousand. Deposits from related parties held by the Bank at December 31, 2016 and 2015 amounted to $5.6 million and $7.5 million, respectively. |
Lease Commitments
Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Lease Commitments | Note 17. Lease Commitments The Company was obligated under noncancelable leases for banking premises. Total rental expense for operating leases for 2016 and 2015 was $90 thousand and $112 thousand, respectively. Minimum rental commitments under noncancelable leases with terms in excess of one year as of December 31, 2016 were as follows (in thousands): Operating 2017 $ 87 2018 65 2019 23 2020 5 2021 and thereafter — $ 180 |
Dividend Reinvestment Plan
Dividend Reinvestment Plan | 12 Months Ended |
Dec. 31, 2016 | |
Text Block [Abstract] | |
Dividend Reinvestment Plan | Note 18. Dividend Reinvestment Plan The Company has in effect a Dividend Reinvestment Plan (DRIP) which provides an automatic conversion of dividends into common stock for enrolled shareholders. The Company may issue common shares to the DRIP or purchase on the open market. Common shares are purchased at a price which is based on the average closing prices of the shares as quoted on the Over-the-Counter The Company issued 3,949 and 4,109 common shares to the DRIP during the years ended December 31, 2016 and 2015, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 19. Fair Value Measurements Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurement and Disclosures” topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its assets and liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 – Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires a significant management judgment or estimation. An instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a recurring basis in the financial statements: Securities available for sale Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). The following tables present the balances of assets measured at fair value on a recurring basis as of December 31, 2016 and 2015 (in thousands). Fair Value Measurements at December 31, 2016 Description Balance Quoted Significant Significant Securities available for sale U.S. agency and mortgage-backed securities $ 80,171 $ — $ 80,171 $ — Obligations of states and political subdivisions 14,620 — 14,620 — Corporate equity securities 11 11 — — $ 94,802 $ 11 $ 94,791 $ — Fair Value Measurements at December 31, 2015 Description Balance Quoted Significant Significant Securities available for sale U.S. agency and mortgage-backed securities $ 89,337 $ — $ 89,337 $ — Obligations of states and political subdivisions 16,214 — 16,214 — Corporate equity securities 8 8 — — $ 105,559 $ 8 $ 105,551 $ — Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Loans held for sale Loans held for sale are carried at the lower of cost or market value. These loans currently consist of one-to-four Impaired Loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected. The measurement of loss associated with impaired loans can be based on the present value of expected future cash flows discounted at the loan’s effective interest rate, the observable market price of the loan, or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level 2) within the last twelve months. However, if the collateral is a house or building in the process of construction or if an appraisal of the property is more than one year old and not solely based on observable market comparables or management determines the fair value of the collateral is further impaired below the appraised value, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business’s financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for (or recovery of) loan losses on the Consolidated Statements of Income. Other real estate owned Loans are transferred to other real estate owned when the collateral securing them is foreclosed on or acquired through a deed in lieu of foreclosure. The measurement of loss associated with other real estate owned is based on the appraisal documents and assessed the same way as impaired loans described above. Any fair value adjustments are recorded in the period incurred as other real estate owned expense on the Consolidated Statements of Income. The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2016 and 2015 (dollars in thousands). Fair Value Measurements at December 31, 2016 Description. Balance as of Quoted Significant Significant Impaired loans, net $ 116 $ — $ — $ 116 Other real estate owned, net 250 — — 250 Fair Value Measurements at December 31, 2015 Description Balance as of Quoted Significant Significant Impaired loans, net $ 377 $ — $ — $ 377 Other real estate owned, net 2,679 — — 2,679 Quantitative information about Level 3 Fair Value Measurements for December 31, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted- Impaired loans, net $ 116 Property appraisals Selling cost 10 % Other real estate owned, net $ 250 Property appraisals Selling cost 0 % The amount disclosed as fair value of other real estate owned at December 31, 2016 represents the carrying value of the property. Since the appraised value of the property, net of selling costs, exceeded the Company’s carrying value on the date the property was transferred from premises and equipment to other real estate owned, the Company did not adjust the carrying value for selling costs. Quantitative information about Level 3 Fair Value Measurements for December 31, 2015 Fair Value Valuation Technique Unobservable Input Range (Weighted- Impaired loans, net $ 377 Property appraisals Selling cost 2-10% (5%) Other real estate owned, net $ 2,679 Property appraisals Selling cost 7% Accounting guidance requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring non-recurring Cash and Cash Equivalents and Federal Funds Sold The carrying amounts of cash and short-term instruments approximate fair values. Securities Held to Maturity Certain debt securities that management has the positive intent and ability to hold until maturity are recorded at amortized cost. Fair values are determined in a manner that is consistent with securities available for sale. Restricted Securities The carrying value of restricted securities approximates fair value based on redemption provisions. Loans For variable-rate loans that re-price non-performing Deposit Liabilities The fair value of demand deposits, savings accounts, and certain money market deposits is the amount payable on demand at the reporting date. The fair value of fixed-rate certificates of deposit is estimated using the rates currently offered for deposits of similar remaining maturities. Accrued Interest Accrued interest receivable and payable were estimated to equal the carrying value due to the short-term nature of these financial instruments. Borrowings and Federal Funds Purchased The carrying amounts of federal funds purchased and other short-term borrowings maturing within ninety days approximate their fair values. Fair values of all other borrowings are estimated using discounted cash flow analyses based on the Company’s current incremental borrowing rates for similar types of borrowing arrangements. Bank Owned Life Insurance Bank owned life insurance represents insurance policies on officers, directors, and past directors of the Company. The cash values of these policies are estimates using information provided by insurance carriers. These policies are carried at their cash surrender value, which approximates the fair value. Commitments and Unfunded Credits The fair value of commitments to extend credit is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of stand-by The carrying values and estimated fair values of the Company’s financial instruments at December 31, 2016 and 2015 are as follows (in thousands): Fair Value Measurements at December 31, 2016 Using Carrying Quoted Significant Significant Fair Value Financial Assets Cash and short-term investments $ 41,092 $ 41,092 $ — $ — $ 41,092 Securities available for sale 94,802 11 94,791 — 94,802 Securities held to maturity 53,398 — 51,223 1,486 52,709 Restricted securities 1,548 — 1,548 — 1,548 Loans held for sale 337 — 337 — 337 Loans, net 480,746 — — 481,475 481,475 Bank owned life insurance 13,928 — 13,928 — 13,928 Accrued interest receivable 1,746 — 1,746 — 1,746 Financial Liabilities Deposits $ 645,570 $ — $ 517,143 $ 127,179 $ 644,322 Subordinated debt 4,930 — — 4,715 4,715 Junior subordinated debt 9,279 — — 9,075 9,075 Accrued interest payable 95 — 95 — 95 Fair Value Measurements at December 31, 2015 Using Carrying Quoted Significant Significant Fair Value Financial Assets Cash and short-term investments $ 39,334 $ 39,334 $ — $ — $ 39,334 Securities available for sale 105,559 8 105,551 — 105,559 Securities held to maturity 66,519 — 64,938 1,500 66,438 Restricted securities 1,391 — 1,391 — 1,391 Loans held for sale 323 — 323 — 323 Loans, net 433,475 — — 438,392 438,392 Bank owned life insurance 11,742 — 11,742 — 11,742 Accrued interest receivable 1,661 — 1,661 — 1,661 Financial Liabilities Deposits $ 627,116 $ — $ 486,015 $ 140,306 $ 626,321 Subordinated debt 4,913 — — 4,913 4,913 Junior subordinated debt 9,279 — — 8,141 8,141 Accrued interest payable 117 — 117 — 117 The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Regulatory Matters | Note 20. Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities, and certain off-balance-sheet The final rules implementing the Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective January 1, 2015, with full compliance of all the requirements being phased in over a multi-year schedule, and becoming fully phased in by January 1, 2019. As part of the new requirements, the common equity Tier 1 capital ratio is calculated and utilized in the assessment of capital for all institutions. The final rules also established a “capital conservation buffer” above the new regulatory minimum capital requirements. The capital conservation buffer is being phased-in Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total (as defined in the regulations), Tier 1 (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined), and of Tier 1 capital to average assets. Management believes, as of December 31, 2016 and December 31, 2015, that the Bank met all capital adequacy requirements to which it is subject. As of December 31, 2016, the most recent notification from the Federal Reserve Bank categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum risk-based capital and leverage ratios as set forth in the following table. There are no conditions or events since that notification that management believes have changed the Bank’s category. A comparison of the capital of the Bank at December 31, 2016 and December 31, 2015 with the minimum regulatory guidelines were as follows (dollars in thousands): Actual Minimum Capital Minimum Amount Ratio Amount Ratio Amount Ratio December 31, 2016: Total Capital (to Risk-Weighted Assets) $ 65,590 13.47 % $ 38,951 8.00 % $ 48,689 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 60,269 12.38 % $ 29,213 6.00 % $ 38,951 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 60,269 12.38 % $ 21,910 4.50 % $ 31,648 6.50 % Tier 1 Capital (to Average Assets) $ 60,269 8.48 % $ 28,432 4.00 % $ 35,540 5.00 % December 31, 2015: Total Capital (to Risk-Weighted Assets) $ 61,513 13.86 % $ 35,497 8.00 % $ 44,372 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 55,989 12.62 % $ 26,623 6.00 % $ 35,497 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 55,989 12.62 % $ 19,967 4.50 % $ 28,842 6.50 % Tier 1 Capital (to Average Assets) $ 55,989 8.12 % $ 27,571 4.00 % $ 34,464 5.00 % In addition to the regulatory minimum risk-based capital amounts presented above, the Bank must maintain a capital conservation buffer as required by the Basel III final rules. The buffer began applying to the Bank on January 1, 2016, and is subject to phase-in |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 21. Accumulated Other Comprehensive Loss Changes in each component of accumulated other comprehensive loss were as follows (in thousands): Net Adjustments Accumulated Balance at December 31, 2014 $ (133 ) $ (1,421 ) $ (1,554 ) Unrealized holding losses (net of tax, ($50)) (95 ) — (95 ) Reclassification adjustment (net of tax, ($19)) 36 — 36 Pension liability adjustment (net of tax, $13) — 25 25 Change during period (59 ) 25 (34 ) Balance at December 31, 2015 $ (192 ) $ (1,396 ) $ (1,588 ) Unrealized holding losses (net of tax, ($341)) (663 ) — (663 ) Reclassification adjustment (net of tax, ($3)) (5 ) — (5 ) Pension liability adjustment (net of tax, $719) — 1,396 1,396 Change during period (668 ) 1,396 728 Balance at December 31, 2016 $ (860 ) $ — $ (860 ) The following table presents information related to reclassifications from accumulated other comprehensive income (loss) for the years ended December 31, 2016 and 2015 (in thousands): Details About Accumulated Other Comprehensive Loss Amount Reclassified from Affected Line Item in the Consolidated Statements of Income For the year ended 2016 2015 Securities available for sale: Net securities (gains) losses reclassified into earnings $ (8 ) $ 55 Net gains (losses) on calls and sales of securities available for sale Related income tax expense (benefit) 3 (19 ) Income tax expense Total reclassifications $ (5 ) $ 36 Net of tax |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Preferred Stock | Note 22. Preferred Stock On November 6, 2015, the Company redeemed all 13,900 outstanding shares of its Fixed Rate Perpetual Preferred Stock, Series A at par for $13.9 million and all 695 outstanding shares of its Fixed Rate Perpetual Preferred Stock, Series B at par for $695 thousand. Prior to redemption, the Company had (i) 13,900 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series A, with a par value of $1.25 per share and liquidation preference of $1,000 per share (the Preferred Stock) and (ii) 695 shares of Fixed Rate Cumulative Perpetual Preferred Stock, Series B, with a par value of $1.25 per share and liquidation preference of $1,000 per share (the Warrant Preferred Stock). The Preferred Stock paid cumulative dividends at a rate of 5% per annum until May 14, 2014, and thereafter at a rate of 9% per annum. The Warrant Preferred Stock paid cumulative dividends at a rate of 9% per annum from the date of issuance. The discount on the Preferred Stock was fully amortized over a five year period through March 12, 2014, using the constant effective yield method. |
Stock Compensation Plans
Stock Compensation Plans | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Compensation Plans | Note 23. Stock Compensation Plans On May 13, 2014, the Company’s shareholders approved the First National Corporation 2014 Stock Incentive Plan, which makes available up to 240,000 shares of common stock for the granting of stock options, restricted stock awards, stock appreciation rights and other stock-based awards. Awards are made at the discretion of the Board of Directors and compensation cost equal to the fair value of the award is recognized over the vesting period. Stock Awards Whenever the Company deems it appropriate to grant a stock award, the recipient receives a specified number of unrestricted shares of employer stock. Stock awards may be made by the Company at its discretion without cash consideration and may be granted as settlement of a performance-based compensation award. During 2016, the Company granted and issued 2,100 shares of common stock to members of the Board of Directors for their dedicated service and support. Compensation expense related to stock awards totaled $25 thousand and $28 thousand for the years ended December 31, 2016 and 2015, respectively. Restricted Stock Units Restricted stock units are an award of units that correspond in number and value to a specified number of shares of employer stock which the recipient receives according to a vesting plan and distribution schedule after achieving required performance milestones or upon remaining with the employer for a particular length of time. Each restricted stock unit that vests entitles the recipient to receive one share of common stock on a specified issuance date. In 2016, 9,130 restricted stock units were granted to employees, with 3,047 units vesting immediately and 6,083 units subject to a two year vesting schedule with one half of the units vesting each year on the grant date anniversary. The recipient does not have any stockholder rights, including voting, dividend or liquidation rights, with respect to the shares underlying awarded restricted stock units until vesting has occurred and the recipient becomes the record holder of those shares. The unvested restricted stock units will vest on the established schedule if the employees remain employed by the Company on future vesting dates. A summary of the activity for the Company’s restricted stock units for the period indicated is presented in the following table: 2016 Shares Weighted Balance at January 1, 2016 8,353 $ 9.00 Granted 9,130 8.80 Vested (7,224 ) 8.92 Forfeited — — Balance at December 31, 2016 10,259 $ 8.88 At December 31, 2016, based on restricted stock unit awards outstanding at that time, the total unrecognized pre-tax |
Acquisition
Acquisition | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Note 24. Acquisition On April 17, 2015, the Bank completed its acquisition of six branch banking operations located in Virginia from Bank of America, National Association (the Acquisition). The Bank paid cash of $6.6 million for the deposits and premises and equipment. The Bank acquired all related premises and equipment valued at $4.5 million and assumed $186.8 million of deposit liabilities. No loans were acquired in the transaction. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. The Bank engaged third party specialists to assist in valuing certain assets, including the real estate, core deposit intangible, and goodwill (bargain purchase gain) that resulted from the Acquisition. The following table provides an assessment of the consideration transferred, assets purchased, and the liabilities assumed (in thousands): As Recorded Fair Value and As Recorded Consideration paid: Cash paid $ 6,618 Total consideration $ 6,618 Assets acquired: Cash and cash equivalents $ 186,119 $ — $ 186,119 Premises and equipment, net 2,165 2,330 4,495 Other assets 114 — 114 Core deposit intangibles — 2,910 2,910 Total assets acquired $ 188,398 $ 5,240 $ 193,638 Liabilities assumed: Deposits $ 186,119 $ 683 $ 186,802 Other liabilities 17 — 17 Total liabilities assumed $ 186,136 $ 683 $ 186,819 Net identifiable assets acquired over liabilities assumed $ 2,262 $ 4,557 $ 6,819 Goodwill (bargain purchase gain) $ (201 ) The bargain purchase gain from the transaction may have resulted from Bank of America’s decision to no longer operate bank branches in certain markets and their willingness to sell the related premises and equipment lower than fair value. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Company Only Financial Statements | Note 25. Parent Company Only Financial Statements FIRST NATIONAL CORPORATION (Parent Company Only) Balance Sheets December 31, 2016 and 2015 (in thousands) 2016 2015 Assets Cash $ 5,690 $ 4,412 Investment in subsidiaries, at cost, plus undistributed net income 60,344 55,334 Other assets 335 408 Total assets $ 66,369 $ 60,154 Liabilities and Shareholders’ Equity Subordinated debt $ 4,930 $ 4,913 Junior subordinated debt 9,279 9,279 Other liabilities 9 9 Total liabilities $ 14,218 $ 14,201 Preferred stock $ — $ — Common stock 6,162 6,145 Surplus 7,093 6,956 Retained earnings 39,756 34,440 Accumulated other comprehensive loss, net (860 ) (1,588 ) Total shareholders’ equity $ 52,151 $ 45,953 Total liabilities and shareholders’ equity $ 66,369 $ 60,154 FIRST NATIONAL CORPORATION (Parent Company Only) Statements of Income Years Ended December 31, 2016 and 2015 (in thousands) 2016 2015 Income Dividends from subsidiary $ 2,325 $ 13,500 Total income $ 2,325 $ 13,500 Expense Interest expense $ 620 $ 286 Supplies 2 17 Legal and professional fees 104 78 Data processing 61 60 Management fee-subsidiary 258 250 Other expense 17 21 Total expense $ 1,062 $ 712 Income before allocated tax benefits and undistributed income of subsidiary $ 1,263 $ 12,788 Allocated income tax benefit 361 242 Income before equity in undistributed income of subsidiary $ 1,624 $ 13,030 Equity in undistributed (distributed) income of subsidiary 4,283 (10,375 ) Net income $ 5,907 $ 2,655 Effective dividend on preferred stock — 1,113 Net income available to common shareholders $ 5,907 $ 1,542 FIRST NATIONAL CORPORATION (Parent Company Only) Statements of Cash Flows Years Ended December 31, 2016 and 2015 (in thousands) 2016 2015 Cash Flows from Operating Activities Net income $ 5,907 $ 2,655 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed (income) loss of subsidiary (4,283 ) 10,375 Amortization of debt issuance costs 17 3 Decrease in other assets 74 279 Increase in other liabilities — 1 Net cash provided by operating activities $ 1,715 $ 13,313 Cash Flows from Financing Activities Proceeds from subordinated debt, net of issuance costs $ — $ 4,910 Cash dividends paid on common stock, net of reinvestment (550 ) (454 ) Cash dividends paid on preferred stock — (1,281 ) Net proceeds from issuance of common stock 113 99 Repurchase of common stock — (1 ) Redemption of preferred stock — (14,595 ) Net cash used in financing activities $ (437 ) $ (11,322 ) Increase in cash and cash equivalents $ 1,278 $ 1,991 Cash and Cash Equivalents Beginning 4,412 2,421 Ending $ 5,690 $ 4,412 |
Nature of Banking Activities 35
Nature of Banking Activities and Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements of First National Corporation include the accounts of all six companies. All material intercompany balances and transactions have been eliminated in consolidation, except for balances and transactions related to the Trusts. The subordinated debt of these Trusts is reflected as a liability of the Company. |
Use of Estimates | Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheet and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, valuation of other real estate owned, valuation of core deposit intangibles, pension obligations and other-than-temporary impairment of securities. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk Most of the Company’s activities are with customers located within the Shenandoah Valley and central regions of Virginia. The types of lending that the Company engages in are included in Note 3. The Company has a concentration of credit risk in commercial real estate, but does not have a significant concentration to any one customer or industry. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of the consolidated statements of cash flows, the Company has defined cash equivalents as those amounts included in the balance sheet captions “Cash and due from banks” and “Interest-bearing deposits in banks.” |
Securities | Securities Investments in debt securities with readily determinable fair values are classified as either held to maturity (HTM), available for sale (AFS) or trading based on management’s intent. Currently, all of the Company’s debt securities are classified as either AFS or HTM. Equity investments in the FHLB, the Federal Reserve Bank of Richmond and Community Bankers Bank are separately classified as restricted securities and are carried at cost. AFS securities are carried at estimated fair value with the corresponding unrealized gains and losses excluded from earnings and reported in other comprehensive income (loss), and HTM securities are carried at amortized cost. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains or losses on the sale of securities are recorded on the trade date using the amortized cost of the specific security sold. Impairment of securities occurs when the fair value of a security is less than its amortized cost. For debt securities, impairment is considered other-than-temporary and recognized in its entirety in net income if either the Company (1) intends to sell the security or (2) it is more likely than not that it will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-than-likely that it will be required to sell the security before recovery, the Company must determine what portion of the impairment is attributable to a credit loss, which occurs when the amortized cost of the security exceeds the present value of the cash flows expected to be collected from the security. If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income (loss). For equity securities carried at cost, such as restricted securities, impairment is considered to be other-than-temporary based on the Company’s ability and intent to hold the investment until a recovery of fair value. Other-than-temporary impairment of an equity security results in a write-down that must be included in income. The Company regularly reviews each security for other-than-temporary impairment based on criteria that include the extent to which cost exceeds market price, the duration of that market decline, the financial health of and specific prospects for the issuer, the best estimate of the present value of cash flows expected to be collected from debt securities, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or estimated fair value. The Company, through its banking subsidiary, requires a firm purchase commitment from a permanent investor before loans held for sale can be closed, thus limiting interest rate risk. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. The Bank enters into commitments to originate mortgage loans whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Rate lock commitments on mortgage loans that are intended to be sold are considered to be derivatives. The period of time between issuance of a loan commitment and closing and sale of the loan generally ranges from 30 to 60 days. The Bank protects itself from changes in interest rates through the use of best efforts forward delivery commitments, whereby the Bank commits to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed interest rate risk on the loan. As a result, the Bank is not exposed to losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. The market value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Bank determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the value of the underlying asset while taking into consideration the probability that the rate lock commitments will close. Because of the high correlation between rate lock commitments and best efforts contracts, no gain or loss occurs on the rate lock commitments. |
Loans | Loans The Company, through its banking subsidiary, grants mortgage, commercial and consumer loans to customers. The Bank segments its loan portfolio into real estate loans, commercial and industrial loans, and consumer and other loans. Real estate loans are further divided into the following classes: Construction and Land Development; 1-4 Real Estate Loans – Construction and Land Development one-to-four Real Estate Loans – 1-4 Family one-to-four Real Estate Loans – Other Commercial and Industrial Loans: non-real Consumer and Other Loans A substantial portion of the loan portfolio is represented by residential and commercial loans secured by real estate throughout the Shenandoah Valley region of Virginia. The ability of the Bank’s debtors to honor their contracts may be impacted by the real estate and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off A loan’s past due status is based on the contractual due date of the most delinquent payment due. Loans are generally placed on non-accrual non-accrual All interest accrued but not collected for loans that are placed on non-accrual Any unsecured loan that is deemed uncollectible is charged-off charged-off charge-off |
Impaired Loans | Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value (net of selling costs), and the probability of collecting scheduled principal and interest payments when due. Additionally, management generally evaluates substandard and doubtful loans greater than $250 thousand for impairment. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case loan-by-loan |
Troubled Debt Restructurings (TDR) | Troubled Debt Restructurings (TDR) In situations where, for economic or legal reasons related to a borrower’s financial condition, management grants a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. TDRs are considered impaired loans. Upon designation as a TDR, the Company evaluates the borrower’s payment history, past due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Company concludes that the borrower is able to make such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on non-accrual non-accrual |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for (or recovery of) loan losses charged to earnings. Loan losses are charged against the allowance when management determines that the loan balance is uncollectible. Subsequent recoveries, if any, are credited to the allowance. For further information about the Company’s loans and the allowance for loan losses, see Notes 3 and 4. The allowance for loan losses is evaluated on a quarterly basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The Company performs regular credit reviews of the loan portfolio to review credit quality and adherence to underwriting standards. The credit reviews consist of reviews by its internal credit administration department and reviews performed by an independent third party. Upon origination, each loan is assigned a risk rating ranging from one to nine, with loans closer to one having less risk. This risk rating scale is our primary credit quality indicator. The Company has various committees that review and ensure that the allowance for loans losses methodology is in accordance with GAAP and loss factors used appropriately reflect the risk characteristics of the loan portfolio. The allowance represents an amount that, in management’s judgment, will be adequate to absorb any losses on existing loans that may become uncollectible. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of the collateral, overall portfolio quality and review of specific potential losses. The evaluation also considers the following risk characteristics of each loan portfolio class: • 1-4 • Real estate construction and land development loans carry risks that the project may not be finished according to schedule, the project may not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure or other factors unrelated to the project. • Other real estate loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because repayment of these loans may be dependent upon the profitability and cash flows of the business or project. • Commercial and industrial loans carry risks associated with the successful operation of a business because repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much reliability. • Consumer and other loans carry risk associated with the continued creditworthiness of the borrower and the value of the collateral, i.e. rapidly depreciating assets such as automobiles, or lack thereof. Consumer loans are likely to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy, or other changes in circumstances. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are classified as impaired, and is established when the discounted cash flows, fair value of collateral less estimated costs to sell or observable market price of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal is ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions among other considerations. The general component covers loans that are not considered impaired and is based on historical loss experience adjusted for qualitative factors. The historical loss experience is calculated by loan type and uses an average loss rate during the preceding twelve quarters. The qualitative factors are assigned by management based on delinquencies and asset quality, national and local economic trends, effects of the changes in the value of underlying collateral, trends in volume and nature of loans, effects of changes in the lending policy, the experience and depth of management, concentrations of credit, quality of the loan review system and the effect of external factors such as competition and regulatory requirements. The factors assigned differ by loan type. The general allowance estimates losses whose impact on the portfolio has yet to be recognized by a specific allowance. Allowance factors and the overall size of the allowance may change from period to period based on management’s assessment of the above described factors and the relative weights given to each factor. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three years to forty years; leasehold improvements are amortized over the lives of the respective leases or the estimated useful life of the leasehold improvement, whichever is less. Software is amortized over its estimated useful life ranging from three to seven years. Depreciation and amortization are recorded on the straight-line method. Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. |
Other Real Estate Owned | Other Real Estate Owned Other real estate owned (OREO) consists of properties obtained through a foreclosure proceeding or through an in-substance |
Bank-Owned Life Insurance | Bank-Owned Life Insurance The Company owns insurance on the lives of a certain group of key employees. The policies were purchased to help offset the increase in the costs of various fringe benefit plans, including healthcare. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and any increase in cash surrender value is recorded as income from bank owned life insurance on the consolidated statements of income. In the event of the death of an insured individual under these policies, the Company receives a death benefit which is recorded as other income. For the year ended December 31, 2016, the Company recorded $102 thousand of death benefits received as other income under these policies. The Company did not receive any death benefits for the year ended December 31, 2015. |
Intangible Assets | Intangible Assets Intangible assets consist of core deposit intangible assets arising from branch acquisitions which are amortized on an accelerated method over their estimated useful lives, which range from six to nine years. |
Stock Based Compensation | Stock Based Compensation Compensation cost is recognized for restricted stock units and other stock awards issued to employees and directors based on the fair value of the awards at the date of grant. The market price of the Company’s common stock at the date of grant is used to estimate the fair value of restricted stock units and other stock awards. |
Retirement Plans | Retirement Plans Pension expense is the net of service and interest cost, return on plan assets and amortization of gains and losses not immediately recognized. Employee 401(k) and profit sharing plan expense is the amount of matching contributions and Bank discretionary matches. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets, including loan participations, are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before maturity. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, “Income Taxes”. Under this guidance, deferred taxes are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates that will apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income or expense in the period that includes the enactment date. See Note 11 for details on the Company’s income taxes. The Company regularly reviews the carrying amount of its net deferred tax assets to determine if the establishment of a valuation allowance is necessary. If based on the available evidence, it is more likely than not that all or a portion of the Company’s net deferred tax assets will not be realized in future periods, a deferred tax valuation allowance would be established. Consideration is given to various positive and negative factors that could affect the realization of the deferred tax assets. In evaluating this available evidence, management considers, among other things, historical performance, expectations of future earnings, the ability to carry back losses to recoup taxes previously paid, length of statutory carry forward periods, experience with utilization of operating loss and tax credit carry forwards not expiring, tax planning strategies and timing of reversals of temporary differences. Significant judgment is required in assessing future earnings trends and the timing of reversals of temporary differences. The Company’s evaluation is based on current tax laws as well as management’s expectations of future performance. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not |
Wealth Management Department | Wealth Management Department Securities and other property held by the wealth management department in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share represents income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Shares not committed to be released under the Company’s leveraged Employee Stock Ownership Plan (ESOP) are not considered to be outstanding. See Note 14 for further information regarding earnings per common share and see Note 13 for further information on the Company’s ESOP. |
Advertising Costs | Advertising Costs The Company follows the policy of charging the production costs of advertising to expense as incurred. Total advertising expense incurred for 2016 and 2015 was $402 thousand and $400 thousand, respectively. |
Comprehensive Income | Comprehensive Income Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale |
Loss Contingencies | Loss Contingencies Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the consolidated financial statements. |
Reclassifications | Reclassifications Some items in the prior year financial statements were reclassified to conform to the current presentation. Reclassifications had no effect on prior year net income or shareholders’ equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In August 2014, the FASB issued ASU No. 2014-15, 205-40): 2014-15 In January 2016, the FASB issued ASU 2016-01, 825-10): 2016-01, 2016-01 In February 2016, the FASB issued ASU 2016-02, 2016-02, right-of-use 2016-02 In March 2016, the FASB issued ASU No. 2016-07, 2016-07, step-by-step available-for-sale 2016-07 In March 2016, the FASB issued ASU No. 2016-09, 2016-09 In June 2016, the FASB issued ASU No. 2016-13, available-for-sale 2016-13 In August 2016, the FASB issued ASU No. 2016-15, 2016-15 In January 2017, the FASB issued ASU No. 2017-01, 2017-01 In January 2017, the FASB issued ASU No. 2017-04, 2017-04 |
Fair Value Measurement and Disclosures | The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurement and Disclosures” topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Costs and Fair Values of Securities | Amortized costs and fair values of securities at December 31, 2016 and 2015 were as follows (in thousands): 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: U.S. agency and mortgage-backed securities $ 81,451 $ 177 $ (1,457 ) $ 80,171 Obligations of states and political subdivisions 14,654 146 (180 ) 14,620 Corporate equity securities 1 10 — 11 Total securities available for sale $ 96,106 $ 333 $ (1,637 ) $ 94,802 Securities held to maturity: U.S. agency and mortgage-backed securities $ 37,269 $ 1 $ (483 ) $ 36,787 Obligations of states and political subdivisions 14,629 18 (211 ) 14,436 Corporate debt securities 1,500 — (14 ) 1,486 Total securities held to maturity $ 53,398 $ 19 $ (708 ) $ 52,709 Total securities $ 149,504 $ 352 $ (2,345 ) $ 147,511 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Securities available for sale: U.S. agency and mortgage-backed securities $ 89,919 $ 261 $ (843 ) $ 89,337 Obligations of states and political subdivisions 15,931 333 (50 ) 16,214 Corporate equity securities 1 7 — 8 Total securities available for sale $ 105,851 $ 601 $ (893 ) $ 105,559 Securities held to maturity: U.S. agency and mortgage-backed securities $ 49,662 $ 36 $ (326 ) $ 49,372 Obligations of states and political subdivisions 15,357 228 (19 ) 15,566 Corporate debt securities 1,500 — — 1,500 Total securities held to maturity $ 66,519 $ 264 $ (345 ) $ 66,438 Total securities $ 172,370 $ 865 $ (1,238 ) $ 171,997 |
Summary of Investments in an Unrealized Loss Position that were Temporarily Impaired | At December 31, 2016 and 2015, investments in an unrealized loss position that were temporarily impaired were as follows (in thousands): 2016 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value (Loss) Fair Value (Loss) Fair Value (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 60,943 $ (1,249 ) $ 5,499 $ (208 ) $ 66,442 $ (1,457 ) Obligations of states and political subdivisions 5,130 (180 ) — — 5,130 (180 ) Total securities available for sale $ 66,073 $ (1,429 ) $ 5,499 $ (208 ) $ 71,572 $ (1,637 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 34,770 $ (483 ) $ — $ — $ 34,770 $ (483 ) Obligations of states and political subdivisions 12,724 (211 ) — — 12,724 (211 ) Corporate debt securities 1,486 (14 ) — — 1,486 (14 ) Total securities held to maturity $ 48,980 $ (708 ) $ — $ — $ 48,980 $ (708 ) Total securities $ 115,053 $ (2,137 ) $ 5,499 $ (208 ) $ 120,552 $ (2,345 ) 2015 Less than 12 months 12 months or more Total Unrealized Unrealized Unrealized Fair Value (Loss) Fair Value (Loss) Fair Value (Loss) Securities available for sale: U.S. agency and mortgage-backed securities $ 50,185 $ (464 ) $ 13,409 $ (379 ) $ 63,594 $ (843 ) Obligations of states and political subdivisions 2,395 (15 ) 1,053 (35 ) 3,448 (50 ) Total securities available for sale $ 52,580 $ (479 ) $ 14,462 $ (414 ) $ 67,042 $ (893 ) Securities held to maturity: U.S. agency and mortgage-backed securities $ 32,791 $ (326 ) $ — $ — $ 32,791 $ (326 ) Obligations of states and political subdivisions 3,052 (19 ) — — 3,052 (19 ) Total securities held to maturity $ 35,843 $ (345 ) $ — $ — $ 35,843 $ (345 ) Total securities $ 88,423 $ (824 ) $ 14,462 $ (414 ) $ 102,885 $ (1,238 ) |
Amortized Cost and Fair Value of Securities | The amortized cost and fair value of securities at December 31, 2016 by contractual maturity are shown below (in thousands). Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without call or prepayment penalties. Corporate equity securities are not included in the maturity categories in the following maturity summary because they do not have a stated maturity date. Available for Sale Held to Maturity Amortized Fair Amortized Fair Cost Value Cost Value Due within one year $ 471 $ 473 $ — $ — Due after one year through five years 10,550 10,520 1,776 1,771 Due after five years through ten years 13,984 13,825 18,174 18,029 Due after ten years 71,100 69,973 33,448 32,909 Corporate equity securities 1 11 — — $ 96,106 $ 94,802 $ 53,398 $ 52,709 |
Composition of Restricted Securities | The composition of restricted securities at December 31, 2016 and 2015 was as follows (in thousands): 2016 2015 Federal Home Loan Bank stock $ 623 $ 466 Federal Reserve Bank stock 875 875 Community Bankers’ Bank stock 50 50 $ 1,548 $ 1,391 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Summary of Loans | Loans at December 31, 2016 and 2015 are summarized as follows (in thousands): 2016 2015 Real estate loans: Construction and land development $ 34,699 $ 33,135 Secured by 1-4 198,763 189,286 Other real estate 211,210 181,447 Commercial and industrial loans 29,981 24,048 Consumer and other loans 11,414 11,083 Total loans $ 486,067 $ 438,999 Allowance for loan losses (5,321 ) (5,524 ) Loans, net $ 480,746 $ 433,475 |
Summary of Loan Classes and an Aging of Past Due Loans | The following tables provide a summary of loan classes and an aging of past due loans as of December 31, 2016 and 2015 (in thousands): December 31, 2016 30-59 60-89 > 90 Total Current Total Non- 90 Days Real estate loans: Construction and land development $ — $ 40 $ — $ 40 $ 34,659 $ 34,699 $ 1,033 $ — 1-4 980 170 410 1,560 197,203 198,763 413 84 Other real estate loans 321 701 — 1,022 210,188 211,210 74 — Commercial and industrial 36 309 32 377 29,604 29,981 — 32 Consumer and other loans 19 7 — 26 11,388 11,414 — — Total $ 1,356 $ 1,227 $ 442 $ 3,025 $ 483,042 $ 486,067 $ 1,520 $ 116 December 31, 2015 30-59 60-89 > 90 Total Current Total Non- 90 Days Real estate loans: Construction and land development $ — $ — $ — $ — $ 33,135 $ 33,135 $ 1,269 $ — 1-4 635 18 264 917 188,369 189,286 346 — Other real estate loans 387 358 790 1,535 179,912 181,447 2,145 — Commercial and industrial — — 92 92 23,956 24,048 94 92 Consumer and other loans 20 — — 20 11,063 11,083 — — Total $ 1,042 $ 376 $ 1,146 $ 2,564 $ 436,435 $ 438,999 $ 3,854 $ 92 |
Analysis of the Credit Risk Profile of Each Loan Class | The following tables provide an analysis of the credit risk profile of each loan class as of December 31, 2016 and 2015 (in thousands): December 31, 2016 Pass Special Substandard Doubtful Total Real estate loans: Construction and land development $ 29,416 $ 2,402 $ 2,881 $ — $ 34,699 Secured by 1-4 193,395 3,295 2,073 — 198,763 Other real estate loans 200,009 6,990 4,211 — 211,210 Commercial and industrial 29,456 386 139 — 29,981 Consumer and other loans 11,414 — — — 11,414 Total $ 463,690 $ 13,073 $ 9,304 $ — $ 486,067 December 31, 2015 Pass Special Substandard Doubtful Total Real estate loans: Construction and land development $ 26,371 $ 2,587 $ 4,177 $ — $ 33,135 Secured by 1-4 182,595 3,376 3,315 — 189,286 Other real estate loans 165,310 9,977 6,160 — 181,447 Commercial and industrial 23,351 432 265 — 24,048 Consumer and other loans 11,083 — — — 11,083 Total $ 408,710 $ 16,372 $ 13,917 $ — $ 438,999 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Allowance by Impairment Methodology and Loans by Impairment Methodology | The following tables present, as of December 31, 2016 and 2015, the total allowance for loan losses, the allowance by impairment methodology and loans by impairment methodology (in thousands). December 31, 2016 Construction Secured by 1-4 Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2015 $ 1,532 $ 939 $ 2,534 $ 306 $ 213 $ 5,524 Charge-offs — (83 ) (165 ) — (540 ) (788 ) Recoveries 4 293 2 11 275 585 Provision for (recovery of) loan losses (1,095 ) (130 ) 771 63 391 — Ending Balance, December 31, 2016 $ 441 $ 1,019 $ 3,142 $ 380 $ 339 $ 5,321 Ending Balance: Individually evaluated for impairment — 37 — — — 37 Collectively evaluated for impairment 441 982 3,142 380 339 5,284 Loans: Ending Balance 34,699 198,763 211,210 29,981 11,414 486,067 Individually evaluated for impairment 1,973 1,828 984 75 — 4,860 Collectively evaluated for impairment 32,726 196,935 210,226 29,906 11,414 481,207 December 31, 2015 Construction Secured by 1-4 Other Real Commercial Consumer Total Allowance for loan losses: Beginning Balance, December 31, 2014 $ 1,403 $ 1,204 $ 3,658 $ 310 $ 143 $ 6,718 Charge-offs — (142 ) (1,125 ) (59 ) (512 ) (1,838 ) Recoveries 4 373 2 72 293 744 Provision for (recovery of) loan losses 125 (496 ) (1 ) (17 ) 289 (100 ) Ending Balance, December 31, 2015 $ 1,532 $ 939 $ 2,534 $ 306 $ 213 $ 5,524 Ending Balance: Individually evaluated for impairment 326 23 195 — — 544 Collectively evaluated for impairment 1,206 916 2,339 306 213 4,980 Loans: Ending Balance 33,135 189,286 181,447 24,048 11,083 438,999 Individually evaluated for impairment 2,544 2,044 3,023 94 — 7,705 Collectively evaluated for impairment 30,591 187,242 178,424 23,954 11,083 431,294 |
Impaired Loans and Related Allowance | Impaired loans and the related allowance at December 31, 2016 and 2015, were as follows (in thousands): December 31, 2016 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 2,388 $ 1,973 $ — $ 1,973 $ — $ 2,407 $ 66 Secured by 1-4 1,851 1,675 153 1,828 37 2,013 87 Other real estate loans 1,213 984 — 984 — 2,529 22 Commercial and industrial 93 75 — 75 — 85 1 Consumer and other loans — — — — — — — Total $ 5,545 $ 4,707 $ 153 $ 4,860 $ 37 $ 7,034 $ 176 December 31, 2015 Unpaid Recorded Recorded Total Related Average Interest Real estate loans: Construction and land development $ 2,741 $ 2,206 $ 338 $ 2,544 $ 326 $ 2,967 $ 60 Secured by 1-4 2,116 2,021 23 2,044 23 2,526 107 Other real estate loans 3,492 2,463 560 3,023 195 4,933 58 Commercial and industrial 107 94 — 94 — 118 — Consumer and other loans — — — — — — — Total $ 8,456 $ 6,784 $ 921 $ 7,705 $ 544 $ 10,544 $ 225 |
Information Regarding Loans Modified under TDR | The following table provides further information regarding loans modified under TDRs during the year ended December 31, 2016 (dollars in thousands): For the year ended Number of Pre- Post- Real estate loans: Construction — $ — $ — Secured by 1-4 1 138 88 Other real estate loans — — — Commercial and industrial — — — Consumer and other loans — — — Total 1 $ 138 $ 88 |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Summary of Changes in the Balance for OREO | Changes in the balance for OREO are as follows (in thousands): 2016 2015 Balance at the beginning of year, gross $ 2,903 $ 2,263 Transfers in 287 1,664 Charge-offs (251 ) (381 ) Sales proceeds (2,882 ) (717 ) Gain on disposition 193 74 Balance at the end of year, gross $ 250 $ 2,903 Less: valuation allowance — (224 ) Balance at the end of year, net $ 250 $ 2,679 |
Summary of Changes in the Allowance for OREO Losses | Changes in the allowance for OREO losses are as follows (in thousands): 2016 2015 Balance at beginning of year $ 224 $ 375 Provision for losses 27 230 Charge-offs, net (251 ) (381 ) Balance at end of year $ — $ 224 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Summary of Premises and Equipment | Premises and equipment are summarized as follows at December 31, 2016 and 2015 (in thousands): 2016 2015 Land $ 4,796 $ 4,974 Buildings and leasehold improvements 18,524 19,390 Furniture and equipment 5,836 11,251 Construction in process 216 20 $ 29,372 $ 35,635 Less accumulated depreciation 8,587 14,246 $ 20,785 $ 21,389 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Scheduled Maturities of Time Deposits | At December 31, 2016, the scheduled maturities of time deposits were as follows (in thousands): 2017 $ 60,894 2018 24,587 2019 14,505 2020 14,678 2021 12,289 Thereafter 1,474 $ 128,427 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Net Deferred Tax Assets | Net deferred tax assets consisted of the following components at December 31, 2016 and 2015 (in thousands): 2016 2015 Deferred Tax Assets Allowance for loan losses $ 1,809 $ 1,878 Allowance for other real estate owned — 76 Unfunded pension liability — 719 Gain on other real estate owned — 672 Securities available for sale 447 102 Accrued pension 689 568 Core deposit intangible 371 179 Unvested stock-based compensation 19 11 Limited partnership investments 17 — Loan origination fees, net 48 — $ 3,400 $ 4,205 Deferred Tax Liabilities Depreciation $ 708 $ 693 Discount accretion 2 2 Loan origination costs, net — 18 $ 710 $ 713 Net deferred tax assets $ 2,690 $ 3,492 |
Income Tax Expense | The income tax expense for the years ended December 31, 2016 and 2015 consisted of the following (in thousands): 2016 2015 Current tax expense $ 1,925 $ 822 Deferred tax expense 428 134 $ 2,353 $ 956 |
Income Tax Expense Differs from the Amount of Income Tax Determined by Applying the U.S. Federal Income Tax Rate to Pretax Income | The income tax expense differs from the amount of income tax determined by applying the U.S. federal income tax rate to pretax income for the years ended December 31, 2016 and 2015, due to the following (in thousands): 2016 2015 Computed tax expense at statutory federal rate $ 2,808 $ 1,227 Decrease in income taxes resulting from: Tax-exempt (254 ) (201 ) Other (201 ) (70 ) $ 2,353 $ 956 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Changes in Plan Benefit Obligation and Fair Value of Assets | The following tables provide a reconciliation of the changes in the plan benefit obligation and the fair value of assets for the periods ended December 31, 2016 and 2015 (in thousands). 2016 2015 Change in Benefit Obligation Benefit obligation, beginning of year $ 8,107 $ 7,729 Service cost 410 446 Interest cost 331 302 Actuarial loss (gain) 245 (271 ) Benefits paid (695 ) (99 ) Gain due to curtailment (2,621 ) — Benefit obligation, end of year $ 5,777 $ 8,107 Changes in Plan Assets Fair value of plan assets, beginning of year $ 4,264 $ 4,368 Actual return on plan assets 124 (5 ) Benefits paid (695 ) (99 ) Fair value of assets, end of year $ 3,693 $ 4,264 Funded Status, end of year $ (2,084 ) $ (3,843 ) Amount Recognized in Other Liabilities $ (2,084 ) $ (3,843 ) |
Amounts Recognized in Accumulated Other Comprehensive Loss, Net of Tax | 2016 2015 Amounts Recognized in Accumulated Other Comprehensive Loss, net of tax Net loss $ — $ 2,115 Deferred income tax benefit — (719 ) Amount recognized $ — $ 1,396 |
Weighted Average Assumptions Used to Determine Benefit Obligation | Weighted Average Assumptions Used to Determine Benefit Obligation Discount rate used for disclosure First five years 1.47 % 4.25 % Five years to twenty years 3.34 % 4.25 % After twenty years 4.30 % 4.25 % Expected return on plan assets 7.50 % 7.50 % Rate of compensation increase 3.00 % 3.00 % |
Components of Net Periodic Benefit Cost | Components of Net Periodic Benefit Cost Service cost $ 410 $ 446 Interest cost 331 302 Expected return on plan assets (297 ) (314 ) Recognized net gain due to curtailment (173 ) — Recognized net actuarial loss 84 86 Net periodic benefit cost $ 355 $ 520 |
Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss | Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) Net gain $ (2,115 ) $ (38 ) Total recognized in other comprehensive income (loss) $ (2,115 ) $ (38 ) Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss) $ (1,760 ) $ 482 |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost Discount rate 4.25 % 4.00 % Expected return on plan assets 7.50 % 7.50 % Rate of compensation increase 3.00 % 3.00 % |
Schedule of Pension Plan's Weighted-Average Asset Allocations | The pension plan’s weighted-average asset allocations at the end of the plan year for 2016 and 2015, by asset category were as follows: 2016 2015 Asset Category Mutual funds - fixed income — 40 % Mutual funds - equity — 60 % Cash and equivalents 100 % — Total 100 % 100 % |
Schedule of Fair Value Hierarchy, the Company's Pension Plan Assets | The following tables set forth by level, within the fair value hierarchy, the Company’s pension plan assets at fair value as of December 31, 2016 and 2015 (in thousands): Fair Value Measurements at December 31, 2016 Total Level 1 Level 2 Level 3 Cash and equivalents $ 3,693 $ 3,693 $ — $ — Total $ 3,693 $ 3,693 $ — $ — Fair Value Measurements at December 31, 2015 Total Level 1 Level 2 Level 3 Fixed income funds $ 1,720 $ 1,720 $ — $ — Equity funds 2,544 2,544 — — Total $ 4,264 $ 4,264 $ — $ — |
Estimated Future Benefit Payments, Which Reflect Expected Future Service | Estimated future benefit payments, which reflect expected future service, as appropriate, were as follows at December 31, 2016 (in thousands): 2017 $ 369 2018 5,408 2019 — 2020 — 2021 — Years 2022-2026 — |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Earnings Per Share | The following table presents the computation of basic and diluted earnings per share for the years ended December 31, 2016 and 2015 (dollars in thousands, except per share data): 2016 2015 (Numerator): Net income $ 5,907 $ 2,655 Effective dividend on preferred stock — 1,113 Net income available to common shareholders $ 5,907 $ 1,542 (Denominator): Weighted average shares outstanding – basic 4,924,636 4,910,608 Potentially dilutive common shares – restricted stock units 3,548 2,566 Weighted average shares outstanding – diluted 4,928,184 4,913,174 Income per common share Basic $ 1.20 $ 0.31 Diluted $ 1.20 $ 0.31 |
Commitments and Unfunded Cred45
Commitments and Unfunded Credits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Financial Instruments Representing Credit Risk | At December 31, 2016 and 2015, the following financial instruments were outstanding whose contract amounts represent credit risk (in thousands): 2016 2015 Commitments to extend credit and unfunded commitments under lines of credit $ 71,421 $ 61,115 Stand-by 8,983 7,732 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Leases [Abstract] | |
Minimum Rental Commitments under Noncancelable Leases | Minimum rental commitments under noncancelable leases with terms in excess of one year as of December 31, 2016 were as follows (in thousands): Operating 2017 $ 87 2018 65 2019 23 2020 5 2021 and thereafter — $ 180 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Balances of Assets Measured at Fair Value on a Recurring Basis | The following tables present the balances of assets measured at fair value on a recurring basis as of December 31, 2016 and 2015 (in thousands). Fair Value Measurements at December 31, 2016 Description Balance Quoted Significant Significant Securities available for sale U.S. agency and mortgage-backed securities $ 80,171 $ — $ 80,171 $ — Obligations of states and political subdivisions 14,620 — 14,620 — Corporate equity securities 11 11 — — $ 94,802 $ 11 $ 94,791 $ — Fair Value Measurements at December 31, 2015 Description Balance Quoted Significant Significant Securities available for sale U.S. agency and mortgage-backed securities $ 89,337 $ — $ 89,337 $ — Obligations of states and political subdivisions 16,214 — 16,214 — Corporate equity securities 8 8 — — $ 105,559 $ 8 $ 105,551 $ — |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | The following tables summarize the Company’s assets that were measured at fair value on a nonrecurring basis as of December 31, 2016 and 2015 (dollars in thousands). Fair Value Measurements at December 31, 2016 Description. Balance as of Quoted Significant Significant Impaired loans, net $ 116 $ — $ — $ 116 Other real estate owned, net 250 — — 250 Fair Value Measurements at December 31, 2015 Description Balance as of Quoted Significant Significant Impaired loans, net $ 377 $ — $ — $ 377 Other real estate owned, net 2,679 — — 2,679 |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative information about Level 3 Fair Value Measurements for December 31, 2016 Fair Value Valuation Technique Unobservable Input Range (Weighted- Impaired loans, net $ 116 Property appraisals Selling cost 10 % Other real estate owned, net $ 250 Property appraisals Selling cost 0 % The amount disclosed as fair value of other real estate owned at December 31, 2016 represents the carrying value of the property. Since the appraised value of the property, net of selling costs, exceeded the Company’s carrying value on the date the property was transferred from premises and equipment to other real estate owned, the Company did not adjust the carrying value for selling costs. Quantitative information about Level 3 Fair Value Measurements for December 31, 2015 Fair Value Valuation Technique Unobservable Input Range (Weighted- Impaired loans, net $ 377 Property appraisals Selling cost 2-10% (5%) Other real estate owned, net $ 2,679 Property appraisals Selling cost 7% |
Carrying Values and Estimated Fair Values of Company's Financial Instruments | The carrying values and estimated fair values of the Company’s financial instruments at December 31, 2016 and 2015 are as follows (in thousands): Fair Value Measurements at December 31, 2016 Using Carrying Quoted Significant Significant Fair Value Financial Assets Cash and short-term investments $ 41,092 $ 41,092 $ — $ — $ 41,092 Securities available for sale 94,802 11 94,791 — 94,802 Securities held to maturity 53,398 — 51,223 1,486 52,709 Restricted securities 1,548 — 1,548 — 1,548 Loans held for sale 337 — 337 — 337 Loans, net 480,746 — — 481,475 481,475 Bank owned life insurance 13,928 — 13,928 — 13,928 Accrued interest receivable 1,746 — 1,746 — 1,746 Financial Liabilities Deposits $ 645,570 $ — $ 517,143 $ 127,179 $ 644,322 Subordinated debt 4,930 — — 4,715 4,715 Junior subordinated debt 9,279 — — 9,075 9,075 Accrued interest payable 95 — 95 — 95 Fair Value Measurements at December 31, 2015 Using Carrying Quoted Significant Significant Fair Value Financial Assets Cash and short-term investments $ 39,334 $ 39,334 $ — $ — $ 39,334 Securities available for sale 105,559 8 105,551 — 105,559 Securities held to maturity 66,519 — 64,938 1,500 66,438 Restricted securities 1,391 — 1,391 — 1,391 Loans held for sale 323 — 323 — 323 Loans, net 433,475 — — 438,392 438,392 Bank owned life insurance 11,742 — 11,742 — 11,742 Accrued interest receivable 1,661 — 1,661 — 1,661 Financial Liabilities Deposits $ 627,116 $ — $ 486,015 $ 140,306 $ 626,321 Subordinated debt 4,913 — — 4,913 4,913 Junior subordinated debt 9,279 — — 8,141 8,141 Accrued interest payable 117 — 117 — 117 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Comparison of Capital of Company and Bank with Minimum Regulatory Guidelines | A comparison of the capital of the Bank at December 31, 2016 and December 31, 2015 with the minimum regulatory guidelines were as follows (dollars in thousands): Actual Minimum Capital Minimum Amount Ratio Amount Ratio Amount Ratio December 31, 2016: Total Capital (to Risk-Weighted Assets) $ 65,590 13.47 % $ 38,951 8.00 % $ 48,689 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 60,269 12.38 % $ 29,213 6.00 % $ 38,951 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 60,269 12.38 % $ 21,910 4.50 % $ 31,648 6.50 % Tier 1 Capital (to Average Assets) $ 60,269 8.48 % $ 28,432 4.00 % $ 35,540 5.00 % December 31, 2015: Total Capital (to Risk-Weighted Assets) $ 61,513 13.86 % $ 35,497 8.00 % $ 44,372 10.00 % Tier 1 Capital (to Risk-Weighted Assets) $ 55,989 12.62 % $ 26,623 6.00 % $ 35,497 8.00 % Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 55,989 12.62 % $ 19,967 4.50 % $ 28,842 6.50 % Tier 1 Capital (to Average Assets) $ 55,989 8.12 % $ 27,571 4.00 % $ 34,464 5.00 % |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Schedule of Changes in Component of Accumulated Other Comprehensive Loss | Changes in each component of accumulated other comprehensive loss were as follows (in thousands): Net Adjustments Accumulated Balance at December 31, 2014 $ (133 ) $ (1,421 ) $ (1,554 ) Unrealized holding losses (net of tax, ($50)) (95 ) — (95 ) Reclassification adjustment (net of tax, ($19)) 36 — 36 Pension liability adjustment (net of tax, $13) — 25 25 Change during period (59 ) 25 (34 ) Balance at December 31, 2015 $ (192 ) $ (1,396 ) $ (1,588 ) Unrealized holding losses (net of tax, ($341)) (663 ) — (663 ) Reclassification adjustment (net of tax, ($3)) (5 ) — (5 ) Pension liability adjustment (net of tax, $719) — 1,396 1,396 Change during period (668 ) 1,396 728 Balance at December 31, 2016 $ (860 ) $ — $ (860 ) |
Reclassifications from Accumulated Other Comprehensive Income (Loss) | The following table presents information related to reclassifications from accumulated other comprehensive income (loss) for the years ended December 31, 2016 and 2015 (in thousands): Details About Accumulated Other Comprehensive Loss Amount Reclassified from Affected Line Item in the Consolidated Statements of Income For the year ended 2016 2015 Securities available for sale: Net securities (gains) losses reclassified into earnings $ (8 ) $ 55 Net gains (losses) on calls and sales of securities available for sale Related income tax expense (benefit) 3 (19 ) Income tax expense Total reclassifications $ (5 ) $ 36 Net of tax |
Stock Compensation Plans (Table
Stock Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Stock Units | A summary of the activity for the Company’s restricted stock units for the period indicated is presented in the following table: 2016 Shares Weighted Balance at January 1, 2016 8,353 $ 9.00 Granted 9,130 8.80 Vested (7,224 ) 8.92 Forfeited — — Balance at December 31, 2016 10,259 $ 8.88 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Assessment of Consideration Transferred, Assets Purchased and Liabilities Assumed | The following table provides an assessment of the consideration transferred, assets purchased, and the liabilities assumed (in thousands): As Recorded Fair Value and As Recorded Consideration paid: Cash paid $ 6,618 Total consideration $ 6,618 Assets acquired: Cash and cash equivalents $ 186,119 $ — $ 186,119 Premises and equipment, net 2,165 2,330 4,495 Other assets 114 — 114 Core deposit intangibles — 2,910 2,910 Total assets acquired $ 188,398 $ 5,240 $ 193,638 Liabilities assumed: Deposits $ 186,119 $ 683 $ 186,802 Other liabilities 17 — 17 Total liabilities assumed $ 186,136 $ 683 $ 186,819 Net identifiable assets acquired over liabilities assumed $ 2,262 $ 4,557 $ 6,819 Goodwill (bargain purchase gain) $ (201 ) |
Parent Company Only Financial52
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Balance Sheets | FIRST NATIONAL CORPORATION (Parent Company Only) Balance Sheets December 31, 2016 and 2015 (in thousands) 2016 2015 Assets Cash $ 5,690 $ 4,412 Investment in subsidiaries, at cost, plus undistributed net income 60,344 55,334 Other assets 335 408 Total assets $ 66,369 $ 60,154 Liabilities and Shareholders’ Equity Subordinated debt $ 4,930 $ 4,913 Junior subordinated debt 9,279 9,279 Other liabilities 9 9 Total liabilities $ 14,218 $ 14,201 Preferred stock $ — $ — Common stock 6,162 6,145 Surplus 7,093 6,956 Retained earnings 39,756 34,440 Accumulated other comprehensive loss, net (860 ) (1,588 ) Total shareholders’ equity $ 52,151 $ 45,953 Total liabilities and shareholders’ equity $ 66,369 $ 60,154 |
Statements of Income | FIRST NATIONAL CORPORATION (Parent Company Only) Statements of Income Years Ended December 31, 2016 and 2015 (in thousands) 2016 2015 Income Dividends from subsidiary $ 2,325 $ 13,500 Total income $ 2,325 $ 13,500 Expense Interest expense $ 620 $ 286 Supplies 2 17 Legal and professional fees 104 78 Data processing 61 60 Management fee-subsidiary 258 250 Other expense 17 21 Total expense $ 1,062 $ 712 Income before allocated tax benefits and undistributed income of subsidiary $ 1,263 $ 12,788 Allocated income tax benefit 361 242 Income before equity in undistributed income of subsidiary $ 1,624 $ 13,030 Equity in undistributed (distributed) income of subsidiary 4,283 (10,375 ) Net income $ 5,907 $ 2,655 Effective dividend on preferred stock — 1,113 Net income available to common shareholders $ 5,907 $ 1,542 |
Statements of Cash Flows | FIRST NATIONAL CORPORATION (Parent Company Only) Statements of Cash Flows Years Ended December 31, 2016 and 2015 (in thousands) 2016 2015 Cash Flows from Operating Activities Net income $ 5,907 $ 2,655 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed (income) loss of subsidiary (4,283 ) 10,375 Amortization of debt issuance costs 17 3 Decrease in other assets 74 279 Increase in other liabilities — 1 Net cash provided by operating activities $ 1,715 $ 13,313 Cash Flows from Financing Activities Proceeds from subordinated debt, net of issuance costs $ — $ 4,910 Cash dividends paid on common stock, net of reinvestment (550 ) (454 ) Cash dividends paid on preferred stock — (1,281 ) Net proceeds from issuance of common stock 113 99 Repurchase of common stock — (1 ) Redemption of preferred stock — (14,595 ) Net cash used in financing activities $ (437 ) $ (11,322 ) Increase in cash and cash equivalents $ 1,278 $ 1,991 Cash and Cash Equivalents Beginning 4,412 2,421 Ending $ 5,690 $ 4,412 |
Nature of Banking Activities 53
Nature of Banking Activities and Significant Accounting policies - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016USD ($)Entity | Dec. 31, 2015USD ($) | |
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Number of accounts included by parent company | Entity | 6 | |
Recognition of other than temporary impairment on basis of credit loss description | If there is no credit loss, there is no other-than-temporary impairment. If there is a credit loss, other-than-temporary impairment exists, and the credit loss must be recognized in net income and the remaining portion of impairment must be recognized in other comprehensive income (loss). | |
Gain (loss) on rate lock commitments | $ 0 | |
Accrual status of loan | 90 days | |
Troubled debt restructurings (TDRs), amount | $ 460,000 | $ 982,000 |
Bank-owned life insurance, death benefits received | $ 425,000 | 373,000 |
Largest amount of tax benefit realized by taxing authority | 50.00% | |
Liability for unrecognized tax benefits | $ 0 | 0 |
Advertising cost | 402,000 | 400,000 |
Life Insurance Product Line [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Bank-owned life insurance, death benefits received | $ 102,000 | $ 0 |
Minimum [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Period of time between issuance of a loan commitment and closing and sale of the loan | 30 days | |
Company not considered value of impairment on individual consumer, residential and small commercial loans | $ 250,000 | |
Management's policy on evaluation of impairment | $ 250,000 | |
Minimum [Member] | Software [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Estimated useful lives of depreciation of premises and equipment | 3 years | |
Minimum [Member] | Core Deposits [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Intangible assets, estimated useful lives | 6 years | |
Minimum [Member] | Premises and Equipment [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Estimated useful lives of depreciation of premises and equipment | 3 years | |
Maximum [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Period of time between issuance of a loan commitment and closing and sale of the loan | 60 days | |
Maximum [Member] | Software [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Estimated useful lives of depreciation of premises and equipment | 7 years | |
Maximum [Member] | Core Deposits [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Intangible assets, estimated useful lives | 9 years | |
Maximum [Member] | Premises and Equipment [Member] | ||
Nature Of Banking Activities And Significant Accounting Policies [Line Items] | ||
Estimated useful lives of depreciation of premises and equipment | 40 years |
Securities - Summary of Amortiz
Securities - Summary of Amortized Costs and Fair Values of Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | $ 96,106 | $ 105,851 |
Securities available for sale, Gross Unrealized Gains | 333 | 601 |
Securities available for sale, Gross Unrealized (Losses) | (1,637) | (893) |
Securities available for sale, Fair Value | 94,802 | 105,559 |
Securities held to maturity, Amortized Cost | 53,398 | 66,519 |
Securities held to maturity, Gross Unrealized Gains | 19 | 264 |
Securities held to maturity, Gross Unrealized (Losses) | (708) | (345) |
Securities held to maturity, Fair Value | 52,709 | 66,438 |
Total securities, Amortized Cost | 149,504 | 172,370 |
Total securities, Gross Unrealized Gains | 352 | 865 |
Total securities, Gross Unrealized (Losses) | (2,345) | (1,238) |
Total securities, Fair Value | 147,511 | 171,997 |
U.S. Agency and Mortgage-Backed Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | 81,451 | 89,919 |
Securities available for sale, Gross Unrealized Gains | 177 | 261 |
Securities available for sale, Gross Unrealized (Losses) | (1,457) | (843) |
Securities available for sale, Fair Value | 80,171 | 89,337 |
Securities held to maturity, Amortized Cost | 37,269 | 49,662 |
Securities held to maturity, Gross Unrealized Gains | 1 | 36 |
Securities held to maturity, Gross Unrealized (Losses) | (483) | (326) |
Securities held to maturity, Fair Value | 36,787 | 49,372 |
Obligations of States and Political Subdivisions [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | 14,654 | 15,931 |
Securities available for sale, Gross Unrealized Gains | 146 | 333 |
Securities available for sale, Gross Unrealized (Losses) | (180) | (50) |
Securities available for sale, Fair Value | 14,620 | 16,214 |
Securities held to maturity, Amortized Cost | 14,629 | 15,357 |
Securities held to maturity, Gross Unrealized Gains | 18 | 228 |
Securities held to maturity, Gross Unrealized (Losses) | (211) | (19) |
Securities held to maturity, Fair Value | 14,436 | 15,566 |
Corporate Equity Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | 1 | 1 |
Securities available for sale, Gross Unrealized Gains | 10 | 7 |
Securities available for sale, Fair Value | 11 | 8 |
Corporate Debt Securities [Member] | ||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||
Securities held to maturity, Amortized Cost | 1,500 | 1,500 |
Securities held to maturity, Gross Unrealized (Losses) | (14) | |
Securities held to maturity, Fair Value | $ 1,486 | $ 1,500 |
Securities - Summary of Investm
Securities - Summary of Investments in an Unrealized Loss Position that were Temporarily Impaired (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Less than 12 months - Fair Value | $ 66,073 | $ 52,580 |
Securities available for sale, 12 months or more - Fair Value | 5,499 | 14,462 |
Securities available for sale, Total - Fair Value | 71,572 | 67,042 |
Securities available for sale, Less than 12 months - Unrealized (Loss) | (1,429) | (479) |
Securities available for sale, 12 months or more - Unrealized (Loss) | (208) | (414) |
Total Unrealized (Loss) | (1,637) | (893) |
Securities held to maturity, Less than 12 months - Fair Value | 48,980 | 35,843 |
Securities held to maturity, 12 months or more - Fair Value | 0 | 0 |
Securities held to maturity, Total - Fair Value | 48,980 | 35,843 |
Securities held to maturity, Less than 12 months - Unrealized (Loss) | (708) | (345) |
Securities held to maturity, 12 months or more - Unrealized (Loss) | 0 | 0 |
Total Unrealized (Loss) | (708) | (345) |
Total securities, Less than 12 months - Fair Value | 115,053 | 88,423 |
Total securities, 12 months or more - Fair Value | 5,499 | 14,462 |
Total securities, Total - Fair Value | 120,552 | 102,885 |
Total securities, Less than 12 months - Unrealized (Loss) | (2,137) | (824) |
Total securities, 12 months or more - Unrealized (Loss) | (208) | (414) |
Total Unrealized (Loss) | (2,345) | (1,238) |
U.S. Agency and Mortgage-Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Less than 12 months - Fair Value | 60,943 | 50,185 |
Securities available for sale, 12 months or more - Fair Value | 5,499 | 13,409 |
Securities available for sale, Total - Fair Value | 66,442 | 63,594 |
Securities available for sale, Less than 12 months - Unrealized (Loss) | (1,249) | (464) |
Securities available for sale, 12 months or more - Unrealized (Loss) | (208) | (379) |
Total Unrealized (Loss) | (1,457) | (843) |
Securities held to maturity, Less than 12 months - Fair Value | 34,770 | 32,791 |
Securities held to maturity, 12 months or more - Fair Value | 0 | 0 |
Securities held to maturity, Total - Fair Value | 34,770 | 32,791 |
Securities held to maturity, Less than 12 months - Unrealized (Loss) | (483) | (326) |
Securities held to maturity, 12 months or more - Unrealized (Loss) | 0 | 0 |
Total Unrealized (Loss) | (483) | (326) |
Obligations of States and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities available for sale, Less than 12 months - Fair Value | 5,130 | 2,395 |
Securities available for sale, 12 months or more - Fair Value | 1,053 | |
Securities available for sale, Total - Fair Value | 5,130 | 3,448 |
Securities available for sale, Less than 12 months - Unrealized (Loss) | (180) | (15) |
Securities available for sale, 12 months or more - Unrealized (Loss) | (35) | |
Total Unrealized (Loss) | (180) | (50) |
Securities held to maturity, Less than 12 months - Fair Value | 12,724 | 3,052 |
Securities held to maturity, 12 months or more - Fair Value | 0 | 0 |
Securities held to maturity, Total - Fair Value | 12,724 | 3,052 |
Securities held to maturity, Less than 12 months - Unrealized (Loss) | (211) | (19) |
Securities held to maturity, 12 months or more - Unrealized (Loss) | 0 | 0 |
Total Unrealized (Loss) | (211) | $ (19) |
Corporate Debt Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities held to maturity, Less than 12 months - Fair Value | 1,486 | |
Securities held to maturity, 12 months or more - Fair Value | 0 | |
Securities held to maturity, Total - Fair Value | 1,486 | |
Securities held to maturity, Less than 12 months - Unrealized (Loss) | (14) | |
Securities held to maturity, 12 months or more - Unrealized (Loss) | 0 | |
Total Unrealized (Loss) | $ (14) |
Securities - Additional Informa
Securities - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016USD ($)SecuritiesObligation | Dec. 31, 2015USD ($)SecuritiesObligation | |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Number of U.S. agency and mortgage-backed securities | Securities | 64 | 52 |
Number of obligations of state and political subdivisions in an unrealized loss position | Obligation | 50 | 13 |
Percentage of investment portfolio | 100.00% | 100.00% |
Weighted-average period of re-pricing of portfolio | 4 years 8 months 12 days | 4 years 7 months 6 days |
Number of corporate debt security | Securities | 1 | |
Proceeds from maturities, calls, principal payments and sales of securities available for sale | $ 22,826,000 | $ 17,725,000 |
Gross realized gains on securities available for sale | 22,000 | 0 |
Gross realized losses on securities available for sale | 14,000 | 55,000 |
Proceeds from sales of securities held to maturity | 657,000 | |
Proceeds from maturities, calls and principal payments of securities held to maturity | 12,821,000 | 2,341,000 |
Gross gains or losses on held to maturity securities | 0 | 0 |
Securities book value | 27,700,000 | $ 26,900,000 |
Impairment recognized | $ 0 |
Securities - Amortized Cost and
Securities - Amortized Cost and Fair Value of Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Amortized Cost and Fair Value Debt Securities [Abstract] | ||
Due within one year, Available for Sale Amortized Cost | $ 471 | |
Due after one year through five years, Available for Sale Amortized Cost | 10,550 | |
Due after five years through ten years, Available for Sale Amortized Cost | 13,984 | |
Due after ten years, Available for Sale Amortized Cost | 71,100 | |
Corporate equity securities, Available for Sale Amortized Cost | 1 | |
Available-for-sale Securities, Debt and Equity, Amortized Cost Basis, Total | 96,106 | $ 105,851 |
Due within one year, Available for Sale Fair Value | 473 | |
Due after one year through five years, Available for Sale Fair Value | 10,520 | |
Due after five years through ten years, Available for Sale Fair Value | 13,825 | |
Due after ten years, Available for Sale Fair Value | 69,973 | |
Corporate equity securities, Available for Sale Fair Value | 11 | |
Available for Sale Securities, Debt and Equity, Fair Value, Total | 94,802 | 105,559 |
Due within one year, Held to Maturity Amortized Cost | 0 | |
Due after one year through five years, Held to Maturity Amortized Cost | 1,776 | |
Due after five years through ten years, Held to Maturity Amortized Cost | 18,174 | |
Due after ten years, Held to Maturity Amortized Cost | 33,448 | |
Corporate equity securities, Held to Maturity Amortized Cost | 0 | |
Held to Maturity Amortized Cost, Total | 53,398 | 66,519 |
Due within one year, Held to Maturity Fair Value | 0 | |
Due after one year through five years, Held to Maturity Fair Value | 1,771 | |
Due after five years through ten years, Held to Maturity Fair Value | 18,029 | |
Due after ten years, Held to Maturity Fair Value | 32,909 | |
Corporate equity securities, Held to Maturity Fair Value | 0 | |
Held to Maturity Fair Value, Total | $ 52,709 | $ 66,438 |
Securities - Composition of Res
Securities - Composition of Restricted Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank Stock and Federal Reserve Bank Stock [Abstract] | ||
Federal Home Loan Bank stock | $ 623 | $ 466 |
Federal Reserve Bank stock | 875 | 875 |
Community Bankers' Bank stock | 50 | 50 |
Total Restricted Securities | $ 1,548 | $ 1,391 |
Loans - Summary of Loans (Detai
Loans - Summary of Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Real estate loans: | |||
Loans | $ 486,067 | $ 438,999 | |
Allowance for loan losses | (5,321) | (5,524) | $ (6,718) |
Loans, net | 480,746 | 433,475 | |
Construction and Land Development [Member] | |||
Real estate loans: | |||
Loans | 34,699 | 33,135 | |
Allowance for loan losses | (441) | (1,532) | (1,403) |
Secured by 1-4 Family Residential [Member] | |||
Real estate loans: | |||
Loans | 198,763 | 189,286 | |
Allowance for loan losses | (1,019) | (939) | (1,204) |
Other Real Estate Loans [Member] | |||
Real estate loans: | |||
Loans | 211,210 | 181,447 | |
Commercial and Industrial [Member] | |||
Real estate loans: | |||
Loans | 29,981 | 24,048 | |
Allowance for loan losses | (380) | (306) | (310) |
Consumer and Other Loans [Member] | |||
Real estate loans: | |||
Loans | 11,414 | 11,083 | |
Allowance for loan losses | $ (339) | $ (213) | $ (143) |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Net deferred loan fees and costs | $ 142 | $ 54 |
Total loans | 486,067 | 438,999 |
Consumer and Other Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,414 | 11,083 |
Consumer and Other Loans [Member] | Demand Deposit Overdrafts [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 264 | $ 257 |
Loans - Summary of Loan Classes
Loans - Summary of Loan Classes and an Aging of Past Due Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | $ 3,025 | $ 2,564 |
Current | 483,042 | 436,435 |
Total loans | 486,067 | 438,999 |
Non- Accrual Loans | 1,520 | 3,854 |
90 Days or More Past Due and Accruing | 116 | 92 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 40 | |
Current | 34,659 | 33,135 |
Total loans | 34,699 | 33,135 |
Non- Accrual Loans | 1,033 | 1,269 |
Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 1,560 | 917 |
Current | 197,203 | 188,369 |
Total loans | 198,763 | 189,286 |
Non- Accrual Loans | 413 | 346 |
90 Days or More Past Due and Accruing | 84 | |
Other Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 1,022 | 1,535 |
Current | 210,188 | 179,912 |
Total loans | 211,210 | 181,447 |
Non- Accrual Loans | 74 | 2,145 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 377 | 92 |
Current | 29,604 | 23,956 |
Total loans | 29,981 | 24,048 |
Non- Accrual Loans | 94 | |
90 Days or More Past Due and Accruing | 32 | 92 |
Consumer and Other Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 26 | 20 |
Current | 11,388 | 11,063 |
Total loans | 11,414 | 11,083 |
30 - 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 1,356 | 1,042 |
30 - 59 Days Past Due [Member] | Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 980 | 635 |
30 - 59 Days Past Due [Member] | Other Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 321 | 387 |
30 - 59 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 36 | |
30 - 59 Days Past Due [Member] | Consumer and Other Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 19 | 20 |
60 - 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 1,227 | 376 |
60 - 89 Days Past Due [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 40 | |
60 - 89 Days Past Due [Member] | Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 170 | 18 |
60 - 89 Days Past Due [Member] | Other Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 701 | 358 |
60 - 89 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 309 | |
60 - 89 Days Past Due [Member] | Consumer and Other Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 7 | |
> 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 442 | 1,146 |
> 90 Days Past Due [Member] | Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 410 | 264 |
> 90 Days Past Due [Member] | Other Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | 790 | |
> 90 Days Past Due [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Past Due | $ 32 | $ 92 |
Loans - Analysis of the Credit
Loans - Analysis of the Credit Risk Profile of Each Loan Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 486,067 | $ 438,999 |
Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 34,699 | 33,135 |
Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 198,763 | 189,286 |
Other Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 211,210 | 181,447 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 29,981 | 24,048 |
Consumer and Other Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,414 | 11,083 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 463,690 | 408,710 |
Pass [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 29,416 | 26,371 |
Pass [Member] | Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 193,395 | 182,595 |
Pass [Member] | Other Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 200,009 | 165,310 |
Pass [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 29,456 | 23,351 |
Pass [Member] | Consumer and Other Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 11,414 | 11,083 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 13,073 | 16,372 |
Special Mention [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,402 | 2,587 |
Special Mention [Member] | Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 3,295 | 3,376 |
Special Mention [Member] | Other Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 6,990 | 9,977 |
Special Mention [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 386 | 432 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 9,304 | 13,917 |
Substandard [Member] | Construction and Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,881 | 4,177 |
Substandard [Member] | Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 2,073 | 3,315 |
Substandard [Member] | Other Real Estate Loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | 4,211 | 6,160 |
Substandard [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total | $ 139 | $ 265 |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance by Impairment Methodology and Loans by Impairment Methodology (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Allowance for loan losses: | ||
Beginning Balance | $ 5,524 | $ 6,718 |
Charge-offs | (788) | (1,838) |
Recoveries | 585 | 744 |
Provision for (recovery of) loan losses | (100) | |
Ending Balance | 5,321 | 5,524 |
Ending Balance: | ||
Allowance for loan losses, Individually evaluated for impairment | 37 | 544 |
Allowance for loan losses, Collectively evaluated for impairment | 5,284 | 4,980 |
Loans: | ||
Ending Balance | 486,067 | 438,999 |
Loans, Individually evaluated for impairment | 4,860 | 7,705 |
Loans, Collectively evaluated for impairment | 481,207 | 431,294 |
Construction and Land Development [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 1,532 | 1,403 |
Recoveries | 4 | 4 |
Provision for (recovery of) loan losses | (1,095) | 125 |
Ending Balance | 441 | 1,532 |
Ending Balance: | ||
Allowance for loan losses, Individually evaluated for impairment | 326 | |
Allowance for loan losses, Collectively evaluated for impairment | 441 | 1,206 |
Loans: | ||
Ending Balance | 34,699 | 33,135 |
Loans, Individually evaluated for impairment | 1,973 | 2,544 |
Loans, Collectively evaluated for impairment | 32,726 | 30,591 |
Secured by 1-4 Family Residential [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 939 | 1,204 |
Charge-offs | (83) | (142) |
Recoveries | 293 | 373 |
Provision for (recovery of) loan losses | (130) | (496) |
Ending Balance | 1,019 | 939 |
Ending Balance: | ||
Allowance for loan losses, Individually evaluated for impairment | 37 | 23 |
Allowance for loan losses, Collectively evaluated for impairment | 982 | 916 |
Loans: | ||
Ending Balance | 198,763 | 189,286 |
Loans, Individually evaluated for impairment | 1,828 | 2,044 |
Loans, Collectively evaluated for impairment | 196,935 | 187,242 |
Other Real Estate [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 2,534 | 3,658 |
Charge-offs | (165) | (1,125) |
Recoveries | 2 | 2 |
Provision for (recovery of) loan losses | 771 | (1) |
Ending Balance | 3,142 | 2,534 |
Ending Balance: | ||
Allowance for loan losses, Individually evaluated for impairment | 195 | |
Allowance for loan losses, Collectively evaluated for impairment | 3,142 | 2,339 |
Loans: | ||
Ending Balance | 211,210 | 181,447 |
Loans, Individually evaluated for impairment | 984 | 3,023 |
Loans, Collectively evaluated for impairment | 210,226 | 178,424 |
Commercial and Industrial [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 306 | 310 |
Charge-offs | (59) | |
Recoveries | 11 | 72 |
Provision for (recovery of) loan losses | 63 | (17) |
Ending Balance | 380 | 306 |
Ending Balance: | ||
Allowance for loan losses, Collectively evaluated for impairment | 380 | 306 |
Loans: | ||
Ending Balance | 29,981 | 24,048 |
Loans, Individually evaluated for impairment | 75 | 94 |
Loans, Collectively evaluated for impairment | 29,906 | 23,954 |
Consumer and Other Loans [Member] | ||
Allowance for loan losses: | ||
Beginning Balance | 213 | 143 |
Charge-offs | (540) | (512) |
Recoveries | 275 | 293 |
Provision for (recovery of) loan losses | 391 | 289 |
Ending Balance | 339 | 213 |
Ending Balance: | ||
Allowance for loan losses, Collectively evaluated for impairment | 339 | 213 |
Loans: | ||
Ending Balance | 11,414 | 11,083 |
Loans, Collectively evaluated for impairment | $ 11,414 | $ 11,083 |
Allowance for Loan losses - Imp
Allowance for Loan losses - Impaired Loans and Related Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | $ 5,545 | $ 8,456 |
Recorded Investment with No Allowance | 4,707 | 6,784 |
Recorded Investment with Allowance | 153 | 921 |
Total Recorded Investment | 4,860 | 7,705 |
Related Allowance | 37 | 544 |
Average Recorded Investment | 7,034 | 10,544 |
Interest Income Recognized | 176 | 225 |
Construction and Land Development [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 2,388 | 2,741 |
Recorded Investment with No Allowance | 1,973 | 2,206 |
Recorded Investment with Allowance | 338 | |
Total Recorded Investment | 1,973 | 2,544 |
Related Allowance | 326 | |
Average Recorded Investment | 2,407 | 2,967 |
Interest Income Recognized | 66 | 60 |
Secured by 1-4 Family Residential [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 1,851 | 2,116 |
Recorded Investment with No Allowance | 1,675 | 2,021 |
Recorded Investment with Allowance | 153 | 23 |
Total Recorded Investment | 1,828 | 2,044 |
Related Allowance | 37 | 23 |
Average Recorded Investment | 2,013 | 2,526 |
Interest Income Recognized | 87 | 107 |
Other Real Estate Loans [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 1,213 | 3,492 |
Recorded Investment with No Allowance | 984 | 2,463 |
Recorded Investment with Allowance | 560 | |
Total Recorded Investment | 984 | 3,023 |
Related Allowance | 195 | |
Average Recorded Investment | 2,529 | 4,933 |
Interest Income Recognized | 22 | 58 |
Commercial and Industrial [Member] | ||
Financing Receivable, Impaired [Line Items] | ||
Unpaid Principal Balance | 93 | 107 |
Recorded Investment with No Allowance | 75 | 94 |
Total Recorded Investment | 75 | 94 |
Average Recorded Investment | 85 | $ 118 |
Interest Income Recognized | $ 1 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2016USD ($)ContractContracts | Dec. 31, 2015USD ($)Contract | |
Allowance For Loan Losses [Line Items] | ||
TDRs performing under the restructured terms | $ 460,000 | $ 982,000 |
Loans modified under TDRs | Contracts | 1 | |
Pre-modification recorded investment totaled | $ 138,000 | |
Post-modification recorded investment totaled | 88,000 | |
Increase (Decrease) in allowance for loan losses | 32,000 | |
Charge offs | 50,000 | |
Troubled debt restructuring loan subsequent default | $ 0 | 0 |
Troubled debt restructuring loan subsequent default period | 90 days | |
Non-accrual loans excluded from impaired loan disclosure | $ 0 | 0 |
Interest accrued on loan | $ 107,000 | $ 243,000 |
Secured by 1-4 Family Residential [Member] | ||
Allowance For Loan Losses [Line Items] | ||
Loans modified under TDRs | Contract | 1 | 0 |
Pre-modification recorded investment totaled | $ 138,000 | |
Post-modification recorded investment totaled | 88,000 | |
Performing Financing Receivable [Member] | ||
Allowance For Loan Losses [Line Items] | ||
TDRs performing under the restructured terms | $ 300,000 | $ 317,000 |
Allowance for Loan Losses - Inf
Allowance for Loan Losses - Information Regarding Loans Modified under TDR (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($)Contracts | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | Contracts | 1 |
Pre-modification outstanding recorded investment | $ 138 |
Post-modification outstanding recorded investment | $ 88 |
Real Estate Loans [Member] | Secured by 1-4 Family Residential [Member] | |
Financing Receivable, Modifications [Line Items] | |
Number of Contracts | Contracts | 1 |
Pre-modification outstanding recorded investment | $ 138 |
Post-modification outstanding recorded investment | $ 88 |
Other Real Estate Owned - Summa
Other Real Estate Owned - Summary of Changes in the Balance for OREO (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Real Estate [Abstract] | ||
Balance at the beginning of year, gross | $ 2,903 | $ 2,263 |
Transfers in | 287 | 1,664 |
Charge-offs | (251) | (381) |
Sales proceeds | (2,882) | (717) |
Gain on disposition | 193 | 74 |
Balance at the end of year, gross | 250 | 2,903 |
Less: valuation allowance | (224) | |
Balance at the end of year, net | $ 250 | $ 2,679 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Other Real Estate [Line Items] | |||
Residential real estate carrying amount included in OREO | $ 250,000 | $ 2,903,000 | $ 2,263,000 |
Net expenses applicable to other real estate owned | 46,000 | 196,000 | |
Residential Real Estate Properties [Member] | |||
Other Real Estate [Line Items] | |||
Residential real estate carrying amount included in OREO | 0 | $ 627,000 | |
Mortgage loans foreclosed | $ 0 |
Other Real Estate Owned - Sum69
Other Real Estate Owned - Summary of Changes in the Valuation Allowance (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Real Estate [Abstract] | ||
Balance at beginning of year | $ 224 | $ 375 |
Provision for losses | 27 | 230 |
Charge-offs, net | (251) | (381) |
Balance at end of year | $ 0 | $ 224 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 29,372 | $ 35,635 |
Less accumulated depreciation | 8,587 | 14,246 |
Premises and equipment, net | 20,785 | 21,389 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 4,796 | 4,974 |
Buildings and Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 18,524 | 19,390 |
Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 5,836 | 11,251 |
Construction in Process [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 216 | $ 20 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense included in operating expenses | $ 1.4 | $ 1.2 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Time deposits, in denominations of $250 thousand or more | $ 10,100 | $ 10,600 |
Brokered deposits | $ 601 | $ 600 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
2,017 | $ 60,894 | |
2,018 | 24,587 | |
2,019 | 14,505 | |
2,020 | 14,678 | |
2,021 | 12,289 | |
Thereafter | 1,474 | |
Time deposits | $ 128,427 | $ 141,101 |
Other Borrowings - Additional I
Other Borrowings - Additional Information (Detail) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Unused lines of credit | $ 125,600,000 | $ 128,100,000 |
Blanket floating lien agreement | 19.00% | |
Collateral pledged on borrowings including real estate loans | $ 103,900,000 | 105,100,000 |
FHLB stock book value | 623,000 | 466,000 |
Borrowings from FHLB | 0 | $ 0 |
FHLB [Member] | ||
Debt Instrument [Line Items] | ||
Unused lines of credit | $ 82,700,000 |
Subordinated Debt - Additional
Subordinated Debt - Additional Information (Detail) - USD ($) $ in Thousands | Oct. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 |
6.75% Fixed Interest Subordinate Term Note [Member] | |||
Subordinated Borrowing [Line Items] | |||
Aggregate principal amount | $ 5,000 | ||
Fixed interest rate | 6.75% | ||
Unsecured Debt [Member] | |||
Subordinated Borrowing [Line Items] | |||
Debt instrument maturity date | Oct. 1, 2025 | ||
Debt instrument prepay date | Oct. 30, 2020 | ||
Unsecured Debt [Member] | 6.75% Fixed Interest Subordinate Term Note [Member] | |||
Subordinated Borrowing [Line Items] | |||
Unamortized debt issuance costs | $ 70 | $ 87 |
Junior Subordinated Debt - Addi
Junior Subordinated Debt - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
First National (VA) Statutory Trust III [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Formation of wholly-owned subsidiary | Jul. 24, 2006 | |
Preferred securities issued through pooled underwriting date | Jul. 31, 2006 | |
Issuance of trust preferred securities | $ 4 | |
LIBOR-indexed floating rate of interest | 2.45% | 1.93% |
Junior subordinated debt | $ 4.1 | |
Securities mandatory redemption date | Oct. 1, 2036 | |
Maximum capital required for capital adequacy | 25.00% | |
First National (VA) Statutory Trust II [Member] | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Formation of wholly-owned subsidiary | Jun. 8, 2004 | |
Preferred securities issued through pooled underwriting date | Jun. 17, 2004 | |
Issuance of trust preferred securities | $ 5 | |
LIBOR-indexed floating rate of interest | 3.59% | 3.13% |
Junior subordinated debt | $ 5.2 | |
Securities mandatory redemption date | Jun. 17, 2034 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred Tax Assets | ||
Allowance for loan losses | $ 1,809 | $ 1,878 |
Allowance for other real estate owned | 76 | |
Unfunded pension liability | 719 | |
Gain on other real estate owned | 672 | |
Securities available for sale | 447 | 102 |
Accrued pension | 689 | 568 |
Core deposit intangible | 371 | 179 |
Unvested stock-based compensation | 19 | 11 |
Limited partnership investments | 17 | |
Loan origination fees, net | 48 | |
Deferred Tax Assets, Gross, Total | 3,400 | 4,205 |
Deferred Tax Liabilities | ||
Depreciation | 708 | 693 |
Discount accretion | 2 | 2 |
Loan origination costs, net | 18 | |
Deferred Tax Liabilities, Total | 710 | 713 |
Net deferred tax assets | $ 2,690 | $ 3,492 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Current tax expense | $ 1,925 | $ 822 |
Deferred tax expense | 428 | 134 |
Income tax expense | $ 2,353 | $ 956 |
Income Taxes - Income Tax Exp79
Income Taxes - Income Tax Expense Differs from the Amount of Income Tax Determined by Applying the U.S. Federal Income Tax Rate to Pretax Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | ||
Computed tax expense at statutory federal rate | $ 2,808 | $ 1,227 |
Decrease in income taxes resulting from: | ||
Tax-exempt interest and dividend income | (254) | (201) |
Other | (201) | (70) |
Income tax expense | $ 2,353 | $ 956 |
Funds Restrictions and Reserv80
Funds Restrictions and Reserve Balance - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Aggregate amount of unrestricted funds | $ 1.9 | |
First Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Aggregate amounts of daily average required balances of reserve against its deposits | $ 6 | $ 5.6 |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) | Jan. 01, 2000 | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of highest-paid consecutive years for benefits | 5 years | ||
Percentage of first employee compensation for which company makes matching contribution | 1.00% | ||
Company contribution on employee specific contribution | 50.00% | ||
Number of hours in service required for the contribution to be allocated | 1000 hours | ||
Minimum eligibility for employees under 401(k) Plan, age | 19 years | ||
Number of plan service years after which employer matching contribution vest | 2 years | ||
Expense attributable to the Plan amounted | $ 482,000 | $ 451,000 | |
Percentage of vested participants | 100.00% | ||
Participants years of credited service | 2 years | ||
Compensation expense for ESOP | $ 0 | $ 0 | |
Shares of the Company held by the ESOP | 247,283 | 208,168 | |
Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of employee for which company makes specified contribution | 2.00% | ||
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of employee for which company makes specified contribution | 6.00% | ||
Defined Benefit Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Minimum eligibility for full-time employees, age | 21 years | ||
Effective discount rate | 25.00% | ||
Amount contributed to pension plan | $ 0 | $ 0 | |
Amount contributed to pension plan, Expected in future | 2,100,000 | ||
Amount of accumulated benefit obligation for the defined benefit pension plan | $ 5,800,000 | $ 5,600,000 | |
Defined Benefit Pension Plan [Member] | Minimum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Period of service credit by employee | 1 year |
Benefit Plans - Schedule of Cha
Benefit Plans - Schedule of Changes in Plan Benefit Obligation and Fair Value of Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Changes in Plan Assets | ||
Fair value of plan assets, beginning of year | $ 4,264 | |
Fair value of assets, end of year | 3,693 | $ 4,264 |
Defined Benefit Pension Plan [Member] | ||
Change in Benefit Obligation | ||
Benefit obligation, beginning of year | 8,107 | 7,729 |
Service cost | 410 | 446 |
Interest cost | 331 | 302 |
Actuarial loss (gain) | 245 | (271) |
Benefits paid | (695) | (99) |
Gain due to curtailment | (2,621) | |
Benefit obligation, end of year | 5,777 | 8,107 |
Changes in Plan Assets | ||
Fair value of plan assets, beginning of year | 4,264 | 4,368 |
Actual return on plan assets | 124 | (5) |
Benefits paid | (695) | (99) |
Fair value of assets, end of year | 3,693 | 4,264 |
Funded Status, end of year | (2,084) | (3,843) |
Amount Recognized in Other Liabilities | $ (2,084) | $ (3,843) |
Benefit Plans - Amounts Recogni
Benefit Plans - Amounts Recognized in Accumulated Other Comprehensive Loss, Net of Tax (Detail) - Defined Benefit Pension Plan [Member] $ in Thousands | Dec. 31, 2015USD ($) |
Amounts Recognized in Accumulated Other Comprehensive Loss, net of tax | |
Net loss | $ 2,115 |
Deferred income tax benefit | (719) |
Amount recognized | $ 1,396 |
Benefit Plans - Weighted Averag
Benefit Plans - Weighted Average Assumptions Used to Determine Benefit Obligation (Detail) - Defined Benefit Pension Plan [Member] | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Assumptions Used to Determine Benefit Obligation | ||
Discount rate used for disclosure | 0.00% | 0.00% |
First five years | 1.47% | 4.25% |
Five years to twenty years | 3.34% | 4.25% |
After twenty years | 4.30% | 4.25% |
Expected return on plan assets | 7.50% | 7.50% |
Rate of compensation increase | 3.00% | 3.00% |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Benefit Cost (Detail) - Defined Benefit Pension Plan [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Components of Net Periodic Benefit Cost | ||
Service cost | $ 410 | $ 446 |
Interest cost | 331 | 302 |
Expected return on plan assets | (297) | (314) |
Recognized net gain due to curtailment | (173) | |
Recognized net actuarial loss | 84 | 86 |
Net periodic benefit cost | $ 355 | $ 520 |
Benefit Plans - Other Changes i
Benefit Plans - Other Changes in Plan Assets and Benefit Obligations Recognized in Accumulated Other Comprehensive (Income) Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | ||
Total recognized in other comprehensive income (loss) | $ (1,396) | $ (25) |
Defined Benefit Pension Plan [Member] | ||
Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income (Loss) | ||
Net gain | (2,115) | (38) |
Total recognized in other comprehensive income (loss) | (2,115) | (38) |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss) | $ (1,760) | $ 482 |
Benefit Plans - Weighted Aver87
Benefit Plans - Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost (Detail) - Defined Benefit Pension Plan [Member] | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Weighted Average Assumptions Used to Determine Net Periodic Benefit Cost | ||
Discount rate | 4.25% | 4.00% |
Expected return on plan assets | 7.50% | 7.50% |
Rate of compensation increase | 3.00% | 3.00% |
Benefit Plans - Schedule of Pen
Benefit Plans - Schedule of Pension Plan's Weighted-Average Asset Allocations (Detail) | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% | 100.00% |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 40.00% | |
Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 60.00% | |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 100.00% |
Benefit Plans - Schedule of Fai
Benefit Plans - Schedule of Fair Value Hierarchy, the Company's Pension Plan Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 3,693 | $ 4,264 |
Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 1,720 | |
Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 2,544 | |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 3,693 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 3,693 | 4,264 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fixed Income Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | 1,720 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 2,544 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Cash and Cash Equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Total | $ 3,693 |
Benefit Plans - Estimated Futur
Benefit Plans - Estimated Future Benefit Payments, which Reflect Expected Future Service (Detail) - Defined Benefit Pension Plan [Member] $ in Thousands | Dec. 31, 2016USD ($) |
Defined Benefit Plan Disclosure [Line Items] | |
2,017 | $ 369 |
2,018 | 5,408 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
Years 2022-2026 | $ 0 |
Earnings per Common Share - Com
Earnings per Common Share - Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
(Numerator): | ||
Net income | $ 5,907 | $ 2,655 |
Effective dividend on preferred stock | 1,113 | |
Net income available to common shareholders | $ 5,907 | $ 1,542 |
(Denominator): | ||
Weighted average shares outstanding - basic | 4,924,636 | 4,910,608 |
Potentially dilutive common shares - restricted stock units | 3,548 | 2,566 |
Weighted average shares outstanding - diluted | 4,928,184 | 4,913,174 |
Income per common share | ||
Basic | $ 1.20 | $ 0.31 |
Diluted | $ 1.20 | $ 0.31 |
Commitments and Unfunded Cred92
Commitments and Unfunded Credits - Financial Instruments Representing Credit Risk (Detail) - First Bank [Member] - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Commitments to Extend Credit [Member] | ||
Other Commitments [Line Items] | ||
Contract amounts represent credit risk | $ 71,421 | $ 61,115 |
Stand-By Letters of Credit [Member] | ||
Other Commitments [Line Items] | ||
Contract amounts represent credit risk | $ 8,983 | $ 7,732 |
Commitments and Unfunded Cred93
Commitments and Unfunded Credits - Additional Information (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Locked-rate commitments to originate mortgage loans | $ 10,100 |
Loans held for sale | 337 |
Amount on deposit in banks exceeded the insurance limits of the Federal Deposit Insurance Corporation | $ 17 |
Transactions with Related Par94
Transactions with Related Parties - Additional Information (Detail) - First Bank [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Related Party Transaction [Line Items] | ||
Total loans | $ 148 | $ 593 |
Total principal additions | 165 | |
Total principal payments | 17 | |
Adjustments to related party loan balances due to transition of related parties | 593 | |
Deposits held by Bank from related parties | $ 5,600 | $ 7,500 |
Lease Commitments - Additional
Lease Commitments - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Leases [Abstract] | ||
Total rental expense for operating leases | $ 90 | $ 112 |
Lease Commitments - Minimum Ren
Lease Commitments - Minimum Rental commitments under Noncancelable Leases (Detail) $ in Thousands | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2,017 | $ 87 |
2,018 | 65 |
2,019 | 23 |
2,020 | 5 |
2021 and thereafter | 0 |
Total minimum payments | $ 180 |
Dividend Reinvestment Plan - Ad
Dividend Reinvestment Plan - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | ||
Period preceding the dividend payment date | 10 days | |
Issuance of common stock dividend reinvestment plan, shares | 3,949 | 4,109 |
Fair Value Measurements - Balan
Fair Value Measurements - Balances of Assets Measured at Fair Value on a Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | $ 94,802 | $ 105,559 |
U.S. Agency and Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 80,171 | 89,337 |
Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 14,620 | 16,214 |
Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 11 | 8 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 94,802 | 105,559 |
Fair Value, Measurements, Recurring [Member] | U.S. Agency and Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 80,171 | 89,337 |
Fair Value, Measurements, Recurring [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 14,620 | 16,214 |
Fair Value, Measurements, Recurring [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 11 | 8 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 11 | 8 |
Fair Value, Measurements, Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Corporate Equity Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 11 | 8 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 94,791 | 105,551 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | U.S. Agency and Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | 80,171 | 89,337 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | Obligations of States and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale Securities, Fair Value | $ 14,620 | $ 16,214 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Period of maturity as classifies as short-term borrowings | 90 days | |
Fair value of loan commitments and standby letters of credit | $ 0 | $ 0 |
Loans Held For Sale [Member] | Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Non recurring fair value adjustments on loans held for sale | $ 0 | $ 0 |
Maximum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Period under consideration for valuation of real estate collateral | 12 months | |
Period under consideration for valuation of business equipment | 1 year | |
Minimum [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Period under consideration for valuation of house or building in the process of construction | 1 year |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Assets Measured at Fair Value on a Nonrecurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned, net | $ 250 | $ 2,679 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 116 | 377 |
Other real estate owned, net | 250 | 2,679 |
Fair Value, Measurements, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans, net | 116 | 377 |
Other real estate owned, net | $ 250 | $ 2,679 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information about Level 3 Fair Value Measurements (Detail) - Fair Value, Measurements, Nonrecurring [Member] - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Impaired Loans Asset, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value assets | $ 116 | $ 377 |
Fair Value Measurements, Valuation Techniques | Property appraisals | |
Selling cost | 10.00% | 5.00% |
Other Real Estate Owned, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value assets | $ 250 | $ 2,679 |
Fair Value Measurements, Valuation Techniques | Property appraisals | |
Selling cost | 0.00% | 7.00% |
Minimum [Member] | Impaired Loans Asset, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Selling cost | 2.00% | |
Maximum [Member] | Impaired Loans Asset, Net [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Selling cost | 10.00% |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying Values and Estimated Fair Values of Company's Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Financial Assets | ||
Securities available for sale | $ 94,802 | $ 105,559 |
Securities held to maturity | 53,398 | 66,519 |
Restricted securities | 1,548 | 1,391 |
Bank owned life insurance | 13,928 | 11,742 |
Accrued interest receivable | 1,746 | 1,661 |
Carrying Amount [Member] | ||
Financial Assets | ||
Cash and short-term investments | 41,092 | 39,334 |
Securities available for sale | 94,802 | 105,559 |
Securities held to maturity | 53,398 | 66,519 |
Restricted securities | 1,548 | 1,391 |
Loans held for sale | 337 | 323 |
Loans, net | 480,746 | 433,475 |
Bank owned life insurance | 13,928 | 11,742 |
Accrued interest receivable | 1,746 | 1,661 |
Financial Liabilities | ||
Deposits | 645,570 | 627,116 |
Subordinated debt | 4,930 | 4,913 |
Junior subordinated debt | 9,279 | 9,279 |
Accrued interest payable | 95 | 117 |
Fair Value [Member] | ||
Financial Assets | ||
Cash and short-term investments | 41,092 | 39,334 |
Securities available for sale | 94,802 | 105,559 |
Securities held to maturity | 52,709 | 66,438 |
Restricted securities | 1,548 | 1,391 |
Loans held for sale | 337 | 323 |
Loans, net | 481,475 | 438,392 |
Bank owned life insurance | 13,928 | 11,742 |
Accrued interest receivable | 1,746 | 1,661 |
Financial Liabilities | ||
Deposits | 644,322 | 626,321 |
Subordinated debt | 4,715 | 4,913 |
Junior subordinated debt | 9,075 | 8,141 |
Accrued interest payable | 95 | 117 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Fair Value [Member] | ||
Financial Assets | ||
Cash and short-term investments | 41,092 | 39,334 |
Securities available for sale | 11 | 8 |
Significant Other Observable Inputs (Level 2) [Member] | Fair Value [Member] | ||
Financial Assets | ||
Securities available for sale | 94,791 | 105,551 |
Securities held to maturity | 51,223 | 64,938 |
Restricted securities | 1,548 | 1,391 |
Loans held for sale | 337 | 323 |
Bank owned life insurance | 13,928 | 11,742 |
Accrued interest receivable | 1,746 | 1,661 |
Financial Liabilities | ||
Deposits | 517,143 | 486,015 |
Accrued interest payable | 95 | 117 |
Significant Unobservable Inputs (Level 3) [Member] | Fair Value [Member] | ||
Financial Assets | ||
Securities held to maturity | 1,486 | 1,500 |
Loans, net | 481,475 | 438,392 |
Financial Liabilities | ||
Deposits | 127,179 | 140,306 |
Subordinated debt | 4,715 | 4,913 |
Junior subordinated debt | $ 9,075 | $ 8,141 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2016 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | Jan. 01, 2016 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Capital conservation buffer period | 4 years | ||||
Capital conservation buffer percentage | 0.625% | 0.625% | |||
Capital conservation buffer percentage maintained at bank | 5.47% | ||||
Scenario, Forecast [Member] | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Capital conservation buffer percentage | 0.625% | 0.625% | 0.625% |
Regulatory Matters - Comparison
Regulatory Matters - Comparison of Capital of Company and Bank with Minimum Regulatory Guidelines (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Regulatory Capital Requirements [Abstract] | ||
Actual Amount Total Capital (to Risk Weighted Assets) | $ 65,590 | $ 61,513 |
Actual Ratio Total Capital (to Risk Weighted Assets) | 13.47% | 13.86% |
Minimum Capital Requirement Amount Total Capital (to Risk Weighted Assets) | $ 38,951 | $ 35,497 |
Minimum Capital Requirement Ratio Total Capital (to Risk Weighted Assets) | 8.00% | 8.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Total Capital (to Risk Weighted Assets) | $ 48,689 | $ 44,372 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Total Capital (to Risk Weighted Assets) | 10.00% | 10.00% |
Actual Amount Tier 1 Capital (to Risk Weighted Assets) | $ 60,269 | $ 55,989 |
Actual Ratio Tier 1 Capital (to Risk Weighted Assets) | 12.38% | 12.62% |
Minimum Capital Requirement Amount Tier 1 Capital (to Risk Weighted Assets) | $ 29,213 | $ 26,623 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Risk Weighted Assets) | 6.00% | 6.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Risk Weighted Assets) | $ 38,951 | $ 35,497 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Risk Weighted Assets) | 8.00% | 8.00% |
Actual Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | $ 60,269 | $ 55,989 |
Actual Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 12.38% | 12.62% |
Minimum Capital Requirement Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | $ 21,910 | $ 19,967 |
Minimum Capital Requirement Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 4.50% | 4.50% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Common Equity Tier 1 Capital (to Risk Weighted Assets) | $ 31,648 | $ 28,842 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Common Equity Tier 1 Capital (to Risk Weighted Assets) | 6.50% | 6.50% |
Actual Amount Tier 1 Capital (to Average Assets) | $ 60,269 | $ 55,989 |
Actual Ratio Tier 1 Capital (to Average Assets) | 8.48% | 8.12% |
Minimum Capital Requirement Amount Tier 1 Capital (to Average Assets) | $ 28,432 | $ 27,571 |
Minimum Capital Requirement Ratio Tier 1 Capital (to Average Assets) | 4.00% | 4.00% |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Tier 1 Capital (to Average Assets) | $ 35,540 | $ 34,464 |
Minimum To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio Tier 1 Capital (to Average Assets) | 5.00% | 5.00% |
Accumulated Other Comprehens105
Accumulated Other Comprehensive Loss - Schedule of Changes in Component of Accumulated Other Comprehensive Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | $ 45,953 | $ 59,564 |
Unrealized holding losses, net of tax | (663) | (95) |
Reclassification adjustment, net of tax | (5) | 36 |
Pension liability adjustment, net of tax | 1,396 | 25 |
Change during period | 728 | (34) |
Ending Balance | 52,151 | 45,953 |
Securities Available for Sale [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (192) | (133) |
Unrealized holding losses, net of tax | (663) | (95) |
Reclassification adjustment, net of tax | (5) | 36 |
Change during period | (668) | (59) |
Ending Balance | (860) | (192) |
Adjustments Related to Pension Benefits [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,396) | (1,421) |
Pension liability adjustment, net of tax | 1,396 | 25 |
Change during period | 1,396 | 25 |
Ending Balance | (1,396) | |
Accumulated Other Comprehensive Loss [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning Balance | (1,588) | (1,554) |
Change during period | 728 | (34) |
Ending Balance | $ (860) | $ (1,588) |
Accumulated Other Comprehens106
Accumulated Other Comprehensive Loss - Schedule of Changes in Component of Accumulated Other Comprehensive Loss (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Equity [Abstract] | ||
Unrealized holding losses, tax | $ (341) | $ (50) |
Reclassification adjustment, tax | (3) | 19 |
Pension liability adjustment, tax | $ 719 | $ 13 |
Accumulated Other Comprehens107
Accumulated Other Comprehensive Loss - Reclassifications from Accumulated Other Comprehensive Income (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities (gains) losses reclassified into earnings | $ (8) | $ 55 |
Related income tax expense (benefit) | 2,353 | 956 |
Total reclassifications | (5,907) | (2,655) |
Amount Reclassified from Accumulated Other Comprehensive Loss [Member] | Securities Available for Sale [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Net securities (gains) losses reclassified into earnings | (8) | 55 |
Related income tax expense (benefit) | 3 | (19) |
Total reclassifications | $ (5) | $ 36 |
Preferred Stock - Additional In
Preferred Stock - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Nov. 06, 2015 | |
Class of Stock [Line Items] | |||
Preferred stock, shares outstanding | 0 | 0 | |
Preferred stock, shares issued | 0 | 0 | |
Par value | $ 1.25 | $ 1.25 | |
Discount on preferred stock amortized period | 5 years | ||
Fixed Rate Cumulative Perpetual Preferred Stock, Series A [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares outstanding | 13,900 | ||
Preferred Stock, redemption amount | $ 13,900 | ||
Preferred stock, shares issued | 13,900 | ||
Par value | $ 1.25 | ||
Preferred stock, liquidation preference | 1,000 | ||
Fixed Rate Cumulative Perpetual Preferred Stock, Series B [Member] | |||
Class of Stock [Line Items] | |||
Preferred stock, shares outstanding | 695 | ||
Preferred Stock, redemption amount | $ 695 | ||
Par value | 1.25 | ||
Preferred stock, liquidation preference | $ 1,000 | ||
Number of shares | 695 | ||
Cumulative dividends of warrant preferred stock | 9.00% | ||
Purchase Agreement [Member] | |||
Class of Stock [Line Items] | |||
Cumulative dividends percentage until May 14, 2014 | 5.00% | ||
Cumulative dividend thereafter | 9.00% |
Stock Compensation Plans - Addi
Stock Compensation Plans - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | May 13, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units, granted | 2,100 | ||
Stock-based compensation expense related to stock awards | $ 25 | $ 28 | |
Stock-based compensation | $ 113 | $ 99 | |
2014 Stock Incentive Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares available for grant | 240,000 | ||
Restricted Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units, granted | 9,130 | ||
Restricted stock units, vested | 7,224 | ||
Restricted stock units, nonvested | 10,259 | 8,353 | |
Vesting period | 2 years | ||
Total unrecognized pre-tax compensation expense related to unvested restricted stock unit awards | $ 34 | ||
Stock-based compensation | $ 88 | $ 71 | |
Restricted Stock Units [Member] | Vesting Immediately [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units, vested | 3,047 | ||
Restricted Stock Units [Member] | Vesting Within Two Year [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock units, nonvested | 6,083 | ||
Percentage of units vesting | 50.00% | ||
Restricted Stock Units [Member] | Vesting Within One Year [ [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of units vesting | 50.00% |
Stock Compensation Plans - Summ
Stock Compensation Plans - Summary of Restricted Stock Units (Detail) | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, Granted | 2,100 |
Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares, beginning of period | 8,353 |
Shares, Granted | 9,130 |
Shares, Vested | (7,224) |
Shares, Forfeited | 0 |
Shares, end of period | 10,259 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 9 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 8.80 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 8.92 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 0 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 8.88 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) | Apr. 17, 2015USD ($)Branches |
Business Acquisition [Line Items] | |
Cash paid for deposits, premises and equipment | $ 6,618,000 |
Amount for acquisition of premises and equipment | 4,495,000 |
Total deposits liabilities assumed | 186,819,000 |
Bank of America [Member] | |
Business Acquisition [Line Items] | |
Amount for acquisition of premises and equipment | 2,165,000 |
Total deposits liabilities assumed | 186,136,000 |
Loans acquired | $ 0 |
Bank of America [Member] | Virginia [Member] | |
Business Acquisition [Line Items] | |
Number of acquired branches | Branches | 6 |
Acquisition - Assessment of Con
Acquisition - Assessment of Consideration Transferred, Assets Purchased and Liabilities Assumed (Detail) $ in Thousands | Apr. 17, 2015USD ($) |
Consideration paid: | |
Cash paid | $ 6,618 |
Total consideration | 6,618 |
Assets acquired: | |
Cash and cash equivalents | 186,119 |
Premises and equipment, net | 4,495 |
Other assets | 114 |
Core deposit intangibles | 2,910 |
Total assets acquired | 193,638 |
Liabilities assumed: | |
Deposits | 186,802 |
Other liabilities | 17 |
Total liabilities assumed | 186,819 |
Net identifiable assets acquired over liabilities assumed | 6,819 |
Goodwill (bargain purchase gain) | (201) |
Bank of America [Member] | |
Assets acquired: | |
Cash and cash equivalents | 186,119 |
Premises and equipment, net | 2,165 |
Other assets | 114 |
Total assets acquired | 188,398 |
Liabilities assumed: | |
Deposits | 186,119 |
Other liabilities | 17 |
Total liabilities assumed | 186,136 |
Net identifiable assets acquired over liabilities assumed | 2,262 |
Fair Value and Other Merger Related Adjustments [Member] | |
Assets acquired: | |
Premises and equipment, net | 2,330 |
Core deposit intangibles | 2,910 |
Total assets acquired | 5,240 |
Liabilities assumed: | |
Deposits | 683 |
Total liabilities assumed | 683 |
Net identifiable assets acquired over liabilities assumed | $ 4,557 |
Parent Company Only Financia113
Parent Company Only Financial Statements - Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Assets | |||
Other assets | $ 5,817 | $ 5,927 | |
Total assets | 716,000 | 692,321 | |
Liabilities and Shareholders' Equity | |||
Subordinated debt | 4,930 | 4,913 | |
Junior subordinated debt | 9,279 | 9,279 | |
Other liabilities | 4,070 | 5,060 | |
Total liabilities | 663,849 | 646,368 | |
Preferred stock | |||
Common stock | 6,162 | 6,145 | |
Surplus | 7,093 | 6,956 | |
Retained earnings | 39,756 | 34,440 | |
Accumulated other comprehensive loss, net | (860) | (1,588) | |
Total shareholders' equity | 52,151 | 45,953 | $ 59,564 |
Total liabilities and shareholders' equity | 716,000 | 692,321 | |
Parent Company [Member] | |||
Assets | |||
Cash | 5,690 | 4,412 | |
Investment in subsidiaries, at cost, plus undistributed net income | 60,344 | 55,334 | |
Other assets | 335 | 408 | |
Total assets | 66,369 | 60,154 | |
Liabilities and Shareholders' Equity | |||
Subordinated debt | 4,930 | 4,913 | |
Junior subordinated debt | 9,279 | 9,279 | |
Other liabilities | 9 | 9 | |
Total liabilities | 14,218 | 14,201 | |
Preferred stock | |||
Common stock | 6,162 | 6,145 | |
Surplus | 7,093 | 6,956 | |
Retained earnings | 39,756 | 34,440 | |
Accumulated other comprehensive loss, net | (860) | (1,588) | |
Total shareholders' equity | 52,151 | 45,953 | |
Total liabilities and shareholders' equity | $ 66,369 | $ 60,154 |
Parent Company Only Financia114
Parent Company Only Financial Statements - Statements of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Expense | ||
Interest expense | $ 1,982 | $ 1,441 |
Supplies | 450 | 783 |
Legal and professional fees | 884 | 1,336 |
Allocated income tax benefit | (2,353) | (956) |
Net income | 5,907 | 2,655 |
Effective dividend on preferred stock | 1,113 | |
Net income available to common shareholders | 5,907 | 1,542 |
Parent Company [Member] | ||
Income | ||
Dividends from subsidiary | 2,325 | 13,500 |
Total income | 2,325 | 13,500 |
Expense | ||
Interest expense | 620 | 286 |
Supplies | 2 | 17 |
Legal and professional fees | 104 | 78 |
Data processing | 61 | 60 |
Management fee-subsidiary | 258 | 250 |
Other expense | 17 | 21 |
Total expense | 1,062 | 712 |
Income before allocated tax benefits and undistributed income of subsidiary | 1,263 | 12,788 |
Allocated income tax benefit | 361 | 242 |
Income before equity in undistributed income of subsidiary | 1,624 | 13,030 |
Equity in undistributed (distributed) income of subsidiary | 4,283 | (10,375) |
Net income | 5,907 | 2,655 |
Effective dividend on preferred stock | 1,113 | |
Net income available to common shareholders | $ 5,907 | $ 1,542 |
Parent Company Only Financia115
Parent Company Only Financial Statements - Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 5,907 | $ 2,655 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of debt issuance costs | 17 | 3 |
Decrease in other assets | 26 | 40 |
Increase in other liabilities | 406 | 161 |
Cash Flows from Financing Activities | ||
Proceeds from subordinated debt, net of issuance costs | 4,910 | |
Cash dividends paid on common stock, net of reinvestment | (550) | (454) |
Cash dividends paid on preferred stock | (1,281) | |
Repurchase of common stock | (1) | |
Redemption of preferred stock | (14,595) | |
Increase in cash and cash equivalents | 1,758 | 14,489 |
Cash and Cash Equivalents | ||
Cash and cash equivalents, beginning of year | 39,334 | 24,845 |
Cash and cash equivalents, end of year | 41,092 | 39,334 |
Parent Company [Member] | ||
Cash Flows from Operating Activities | ||
Net income | 5,907 | 2,655 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed (income) loss of subsidiary | (4,283) | 10,375 |
Amortization of debt issuance costs | 17 | 3 |
Decrease in other assets | 74 | 279 |
Increase in other liabilities | 1 | |
Net cash provided by operating activities | 1,715 | 13,313 |
Cash Flows from Financing Activities | ||
Proceeds from subordinated debt, net of issuance costs | 4,910 | |
Cash dividends paid on common stock, net of reinvestment | (550) | (454) |
Cash dividends paid on preferred stock | (1,281) | |
Net proceeds from issuance of common stock | 113 | 99 |
Repurchase of common stock | (1) | |
Redemption of preferred stock | (14,595) | |
Net cash used in financing activities | (437) | (11,322) |
Increase in cash and cash equivalents | 1,278 | 1,991 |
Cash and Cash Equivalents | ||
Cash and cash equivalents, beginning of year | 4,412 | 2,421 |
Cash and cash equivalents, end of year | $ 5,690 | $ 4,412 |